DMO To Issue First FGN Savings Bond

By Ikenga Chronicles March 10, 2017

DMO To Issue First FGN Savings Bond

Subscription for the Federal Government of Nigeria Savings Bond (FGNSB) will be made open by the Debt Management Office (DMO) on Monday 13th March, 2017.
This,according to DMO will give Nigerians the opportunity to explore the huge benefits derivable from the retail of bonds.
The retail savings bond product will be accessible to all income groups for subscription at N5,000.00 per unit, with a maximum subscription of N50 million and a tenor ranging from two to three years.
The Director General, DMO, Dr. Abraham Nwankwo, who spoke recently at the  listing of the US$1 billion FGN Eurobond on the Nigerian Stock Exchange (NSE), had hinted the market of the government’s plan to democratize the bond market by making it easily accessible to most Nigerians.
According to him, if retail participation in the bond market is encouraged, the goal of having an all-inclusive participation in investments and driving financial inclusion in the country will be further enhanced.
Amongst its many benefits, FGNSB would provide opportunity to all citizens, irrespective of income level, to contribute to national development, deepen the national savings culture; enable all citizens participate in and benefit from the favourable returns available in the capital market as well as diversify investment options for people and funding sources for the government.
Chief Executive, Stanbic IBTC Stockbrokers Limited, the receiving agent to the bond, Mrs. Titi Ogungbesan, also stated that subscription for the Bond can be made through Stanbic IBTC Stockbrokers, as the sole Government Stockbroker to the Federal Government bond; distribution and receiving agent for the retail savings bond.
This means that both current and prospective clients can access the product at any Stanbic IBTC Bank branch nationwide to subscribe to the auction or submit their completed forms.
“Stanbic IBTC would continue to partner with government and other stakeholders to achieve sustainable economic development, including the deepening of the Nigerian Capital Market,” said Ogungbesan.
The positioning and transformation of Nigeria’s bond market into a vibrant investment window, she added, requires the collaboration of all stakeholders and reiterated the organization’s commitment to facilitate stability and growth of the Nigerian Capital Market, via confidence-building initiatives and leveraging investment opportunities in the market.
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