DMO to Issue FGN Savings Bond to Investors
A window of opportunity for Nigerians to harness the huge benefits derivable from retail bonds will unlock tomorrow when subscription for the Federal Government of Nigeria Savings Bond (FGNSB) opens. The offer will run for five days, with subscription forms available through Stanbic IBTC Stockbroker Limited and in all branches of Stanbic IBTC Bank across the country
According to the Debt Management Office ( DMO), 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.
Director General, DMO, Dr. Abraham Nwankwo, speaking during the recent listing of the $1 billion FGN Eurobond on the Nigerian Stock Exchange, had hinted the market of the government’s plan to democratise the bond market by making it easily accessible to most Nigerians. He said by promoting retail participation in the bond market, the goal of encouraging an all-inclusive participation in investments and driving finan- cial 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, Mrs. Titi Ogungbesan, stated that subscription for the bond could be made through stockbroking firm, 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.