7/3/2017/Cordros Research

We are pleased to introduce to you the Federal Government of Nigeria (FGN) Savings Bond which is issued by the Debt Management Office (DMO) on behalf of the FGN.

It is an initiative of the Federal Government targeted at the middle and lower income earners to create awareness about savings culture and provide an opportunity to earn higher interest compared to the low interest on saving accounts with banks.

It is safe and guaranteed by the FGN, meaning there is no default risk. The return, payable quarterly, is guaranteed and principal will be repaid at maturity.

The offer will commence on Monday, March 13, 2017 and will run for 5 days, with a minimum size of N5,000 and maximum of N50 million.

Features:

• Issued by the DMO but the liability of the FGN.

• Minimum subscription is N5,000 while maximum is N50 million.

• Tenor of the instrument is between 2 -3 years.

• Interest (fixed) is paid quarterly.

Benefits to the investor:

• The fixed interest rate being paid is more attractive than rate on savings account.

• Returns on the investment are guaranteed and paid quarterly.

• Minimum investment is as low as N5,000 which provides opportunity for low income earners.

• The interest earned on the investment is tax exempt.

• A certificate is issued as an evidence of investment which can be used as collateral for  loans.

• Liquidity of the instrument as client can buy and sell as he/she wishes.