The Central Bank of Nigeria on the authority of The Debt Management Office on behalf of the Federal Government Of Nigeria Offers for Subscription by Auction and is authorized to receive applications for

N40,000,000,000 – 15.54% FGN FEB 2020 (5-Yr Re-opening)*
N30,000,000,000 - 12.1493% FGN JUL 2034 (20-Yr Re-opening)*

Auction Date: July 15, 2015
Settlement Date: July 17, 2015

SUMMARY OF THE OFFER
ISSUER:
Federal Government of Nigeria (“FGN”)

UNITS OF SALE:
N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter

INTEREST RATE: 
For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.
 
INTEREST PAYMENT:
Payable semi-annually

REDEMPTION: 
Bullet repayment on the maturity date

STATUS: 
1. Qualifies as securities in which trustees can invest under the Trustee Investment Act

2. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors

3. Listed on the Nigerian Stock Exchange

4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks

SECURITY: 
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria


If your interested let me know, remember it's next week, the earlier the better.

I work with a top financial institution that can help you buy FG bonds

If you also have questions feel free to ask

What rate would you advice for the 15.54% FEB 2020 Bond?

battleaxe:
What rate would you advice for the 15.54% FEB 2020 Bond?

15%

I should start saving up for this. It appears that FGN BOND is a very secure venture to partake in if u intend on appreciation of ur fund

still don't understand why many retail investors shy away from this!

the rates are far higher what you get in Tbills and it enables one to plan well!

Currently have a 7 years bond and I use the bi annual coupons for sch fees settlements

feelamong:
still don't understand why many retail investors shy away from this!

the rates are far higher what you get in Tbills and it enables one to plan well!

Currently have a 7 years bond and I use the bi annual coupons for sch fees settlements

People shy away from it because the feel it's too long, they are like 7years! But the truth is that it all depends on your financial plan.
Second reason is lack of information, most people don't know that with as little as 100k u could buy bonds

could you elaborate further please.

ernie4life:


People shy away from it because the feel it's too long, they are like 7years! But the truth is that it all depends on your financial plan.
Second reason is lack of information, most people don't know that with as little as 100k u could buy bonds

It is not compulsory that you hold the bond till maturity. Even if the tenure is 7 years, you can sell whenever

NairaQuest:


It is not compulsory that you hold the bond till maturity. Even if the tenure is 7 years, you can sell whenever

Yea you could resale

ernie4life:


Yea you could resale

how about you enumerate the processes to aquiring these bonds and what institution would you personally recommend.

troy20:

how about you enumerate the processes to aquiring these bonds and what institution would you personally recommend.

Bonds will be sold tomorrow so probably the info will be for next time.

To acquire FG bonds is simple, meet a financial institution that has access to it, and they will tell u what to do.

At investment-one financial services limited where I work, you need to fill a form then make a transfer of the amount you want us to buy bonds for, give an instruction to us to buy bonds and that's all.

The process may vary from one institution to another so I advice you enquire first.

What is the minimum amount to invest in bond @ investment one. And to liqudate before maturity

sentoms:
What is the minimum amount to invest in bond @ investment one. And to liqudate before maturity

Minimum amount is 100k
For preliquidation there is a charge but not sure of the figure

ernie4life:


Minimum amount is 100k
For preliquidation there is a charge but not sure of the figure

There should be no extra charge for selling your bond before maturity, just the regula transaction or sales charge. Bonds trade in the market like stocks. It appears that we need investor education in Nigeria

how do i go about investing in fg bond

@feelamong- what does the ffing mean?
For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.

Please, some of us don't understand those business terms. If I invest 10k , what'll be the interest rate?