₦airaland Forum

Updated list of accredited Stockbroking Firms for the FGN Savings Bond

April offer

March allotment result

DeRuggedProf:
DISCL: I have less than 10 units, but mad...

10m units you mean?

austinkenneth:
Hello Ladies and Gents,

Please can something be done about the position of this tread in the Investment section of nairaland. The tread is currently mixed up in th same section with all manner of ponzi schemes and very very shady deals.

I think the admin should make it a permanent number 1 on the front page of this section.

This is the longest thread that I have seen in this forums and the most educative for me. I see several intelligent minds here and I respect that a lot. The Information sharing that I see on here is second to none.

I propose we all look at this and see what we can do. I'm tired of scrolling through ponzi schemes to get to this very useful tread especially during weekends.

ALL you need do is follow the thread. Clicking on followed topics (FT) at the top of the page will show you threads you follow.

The rate is finally out

pasuma:
Did you read the post at all ? The minimum is 5,000 and max 50,000,000 . Where did you get your 50 million from ?

The normal FGN Bond is different from the FGN Savings Bond.
The minimum for the FGN Savings Bond is 5,000 (this is the new bond) while the regular FGN Bond (the old one) is now 50m.

X21:
Have they announced the interest rate

Not yet.

Paramount01:
Please, I am a novice about this thing can you please educate me

Copied from a post by Timmi

Source:Nairametrics.com
The Debt Management Office of Nigeria launched a new retail investment program called the FGN Savings Bonds. In this article, Nairametrics will explain what the FGN Savings Bond means and how you can subscribe to it. We will also explain the difference between this product and other similar ones such as Treasury Bills. You can call this article the A-Z of the FGN Savings Bonds.

What is a Bond?

A bond is a confirmation from a borrower that it borrowed money (cash) from a lender at a given interest rate and repayable over a period. Bonds also include how payment of the principal and interest will be made. They also include the minimum amount that can be subscribed by a lender and in what multiples. Bonds are evidenced by an instrument typically issued by a company or country in exchange for cash.

What are FGN Bonds?

FGN Bond is a bond issued by the Nigerian government in exchange for cash at a given interest rates and a repayment period. It also states how payments of the principal and interest will be made. Nigeria has more than one FGN Bond, with each differentiated by their tenor (duration) and interest rates.

What is FGN Savings Bond?

An FGN Savings Bond is a bond issued by the Debt Management Office on behalf of the Nigerian Government. The bond is tailored and targeted at retail investors and includes a guaranteed interest payment and repayment of the principal. You can check this article for more on FGN Savings Bond.

Why is the government issuing a retail bond?

The government is issuing savings bonds targeted at ordinary Nigerians of all income groups, giving them the opportunity to earn an income through saving and investing. The bond is also expected to help promote the savings culture of Nigerians. Most Nigerians are thought not to save in banks because of very low-interest rates.

What are the benefits ?

The bond earns you an interest that will be paid quarterly directly into your bank account.
The bond is safe and is backed by the full faith and credit of the FG. Government Bonds hardly default, so you are nearly 100% sure that you will get your money back in full along with the interest.
You need not be rich to invest as anyone with as little as N5,000 can invest in the bond.
FGN Savings Bond is a good way to save towards your marriage, an occasion, school, project, retirement etc.
You can also use the Bond as a collateral to get a loan from a bank.
What are the risk ?

FGN Bonds are often said to be risk free because the Federal Government hardly defaults on debt repayments especially if it is a Naira denominated debt. However, being a bond there are a few risks, should you decide to sell before maturity. Just like a stock, you can invest N1 million in a bond and get only N900k in principal. We’ll explain this later. You also face the risk of losing the value of your investment to inflation. If the interest rate on the FGN Savings Bond is lower than inflation rate, then your returns are lower than in real terms. In a high inflationary environment like Nigeria, investing in bonds can lead to a loss of value if the rates are lower than inflation.

How much can I invest?

Retail investors looking to invest in the FGN Savings Bond only need a minimum of N5,000 to invest. Subsequent investment over N5,000 will be in multiples of N1,000. Meaning that you cannot invest N5,500 or N12,700. It’s either N6,000 or N13,000 or N30,000. The maximum amount a single retail investor can invest in the FGN Bond is N50 million.

Where can I buy it from?

You can buy it from any of the approved registered stockbrokers. Just ask your stockbroker if they are authorised to sell. It’s that simple.

What is the tenor of the loans and what is the interest rate?

The bonds have a tenor of 2 and 3 years respectively. Meaning that you can either invest in an FGN Savings Bond with a duration of 2 years or one with a duration of 3 years. The interest rates are determined by the Debt Management Office. They decide what rates they are willing to pay.

How will the interest and principal be paid?

The interest will be paid quarterly into your bank accounts while the principal will be paid at maturity (the end of the tenor, 2 or 3 years) depending on what duration you subscribed to.

When did the government, start selling FGN Savings Bonds?

The Federal Government through the Debt Management Office will start selling FGN Bonds on the 13th of March 2017.

Will it be issued monthly?

Yes, the FGN Savings Bond will be issued monthly

What if I decide to sell before maturity?

You need not hold on to the bond until maturity. If you need cash anytime during the duration of the bond, you can sell your bond in exchange for cash. However, the portion of the interest that you are not entitled to earn because you have sold will not accrue to you any longer. For example, if you buy March 13 and sell August 13 2017 because you cannot wait till March 2019 (after two years) to get your principal, you will only be entitled to the interest earned between March 13 and August 13 2017. However, note that should you wish to sell before maturity, you might pay a transaction fee. Also, because it is a bond, the price you get might be more or higher depending on the market value of the bond.

What is a market value?

A bond has certain characteristics similar to a stock. Being an instrument, bond prices can often be higher or lower than their face value. A face value of a Nigerian Bond is typically N1,000. Let’s assume you bought FGN Savings bond at N1 million and at an interest rate of 13% per annum. It means that for every N1,000 of your investment, you will earn N130 (also known as the coupon rate). So, if you decide to hold your N1 million to maturity, you will earn N130k annually.

In the secondary market, bond prices behave like stock and react to the forces of demand and supply. Supposing lending rates in the country suddenly rise to 16%. It means that the bond you bought that earns you 13% is no longer attractive as the FG will only continue to pay the N130 for every N1,000 in Face value.

To therefore earn a return of 16% at the coupon of N130, the bond will need to sell for a Face Value of N814.11. So, should you wish to sell your bond when the price is going for N814.11, either because you are in need of cash or just as part of your trading activities, you will only get N814.1k (still subject to charges) and lose N185.8. This explains the risks we talked about earlier.

Can I buy even more within a tenor?

Yes, you can subscribe for more provided it is in multiples of N1,000 and not exceeding a total cumulative amount of N50 million.

What is the difference between FGN Savings Bonds and Treasury Bills?

Unlike Treasury Bills, FGN Savings Bonds has a duration of between 2-3 years. Treasury Bills are not more than 1 year with shorter tenors of 91 days and 182 days.
Treasury Bills rates are determined by the forces of demand and supply. The DMO says, the FGN Saving Bonds rates will be determined by them
Treasury Bills interest rates are paid upfront. For example, if you invest in Treasury Bills today, they will pay you all your interest today. For FGN Savings Bonds, it will be at the end of the first quarter.
Unlike FGN Savings Bonds, Treasury Bills are not sold in the stock market
The DMO has also now said, Treasury Bills can no longer be sold to retail investors. You will need at least N50,000,1000 to invest in Treasury Bills.

Copied from a post by Timmi

Below is the link to download the subscription form to the FGN Savings Bond

https://www.dmo.gov.ng/fgn-bonds/savings-bond/1963-fgn-saving-bond-subcription-form/file

Tritri:
am out of ucap..might enter at 2 naira...even though the lost was much my nestle made it up..but am not happy when i lose such an amount almost 11% gone within 3 days...haaa.....just when i decide to wipe my tears i saw FBNH is now 2.96...


OGA LOCO pls how do u do fcmb at 1.20 everyday...aberg

This is what I talked about earlier today.

ihedioramma:
Why are you saying so? i think you have nestle? or is it 100 units?.I hope you are following unilever ?

Am guessing he sold it at loss to load ucap.
Tritri you have to be a little patient with stocks you buy. From your posts, you seem to be losing due to impatience.

Just my observation. I might be wrong.

locodemy:
Hello Rugged,

How are you doing @ fcmb?
Just want to inform you that we need to see and discuss about the result/dividend issues of the company.
I am only giving you from now to friday to make yourself available for the meeting so that we can release the result on monday.If this meeting is adjourn,I will dispose my holdings and leave only you in the fcmb bus.Our minority shareholders are getting tired and offloading their holdings gradually.Pls I need us to talk.

Thanks
Bro Loco.

*Just passing*

Updated list of accredited Stockbroking firms for FGN Savings bond

Laughing at some funny posts am seeing this morning.

List of accredited Stockbroking Firms for FGN Savings bond

DEBT MANAGEMENT OFFICE NIGERIA PUBLIC NOTICE

Introduction Of FGN SAVINGS Bond

This is to bring to the notice of the public that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce a retail savings product that will be accessible to all income groups - the FGN Savings Bond.

A. Commencement Date
-Offer will be opened on Monday, March 13, 2017 and will run for 5 days.

B. Purpose
-To deepen the national savings culture.
-To provide opportunity to all citizens irrespective of income level to contribute to National Development.
-To enable all citizens participate in and benefit from the favourable returns available in the capital
market.
-To diversify funding sources for the government.

C. Benefits
-Interest income is paid quarterly directly into bond holder’s account.
-The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary
market before maturity.
-Good for savings towards retirement, marriage, school fees, house projects, etc.
-Safety: backed by the full faith and credit of the Federal Government of Nigeria.

D. Features
-The product will be issued monthly in tenors of 2 and 3 years, with quarterly payment of interest to investors.
-The product will be offered to the investing public through Offer for Subscription at an interest rate to be announced by the DMO.
-The Offer for subscription will be open for 5 days from the date of announcement.
-Minimum subscription amount is N5,000.00 with additions in multiples of N1,000.00, subject to a maximum of N50,000,000.00.
-The Bond is backed by the full faith and credit of the Federal Government of Nigeria.

E. Subscription Mode
Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock
Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit
www.dmo.gov.ng for the list of accredited Stockbroking Firms).

F. New Market Structure
In view of this addition to the FGN securities market, the new market structure for the FGN securities market will be as follows:
-FGN Saving Bonds - minimum subscription N5,000.00, maximum N50,000,000.00.
-Nigerian Treasury Bills - minimum subscription N50,001,000.00.
-FGN Bonds - minimum subscription N50,001,000.00.

Please note that the new market structure takes effect from March 6, 2017.

DEBT MANAGEMENT OFFICE
The Presidency
NDIC Building (First Floor)
Plot 447/448 Constitution Avenue
Central Business District
P.M.B. 532, Garki, Abuja
Website: http://www.dmo.gov.ng
Email: enquiries@dmo.gov.ng

Just got debited by FCMB. Bided 18.43. This is my closest bid to stop rate in a long time.

IHelp:
Yet to be debited by Gtb (I went with the banks rate) 364days

For FCMB I went with my own rate 18.45 account has been debited.

Gtb debited @17.95 (365days)
This is not fair

Yet to be debited by Gtb (I went with the banks rate) 364days

For FCMB I went with my own rate 18.45 account has been debited.

locodemy:
oga why you dey load 30% now when you know the thing is coming to 50 aby na monkey hunting?

These FO people don use style come this morning o.

Just following one of my rules

Loaded FO 30%. Waiting to load more @ N50.

locodemy:
we who understand this market better than you saw all these losses coming and we cleaved on fcmb,ucap,uba,Afriprud,Eterna oil,oando,Access ,zenith [/b]etc.[b]

Will you say you were not warned.what we are not seeing here are faces but experienced ones full here gberekete.Always pay attention and know exactly what is wrong/right with a company they tell you not to invest and the one to invest.

Anyway,i am sorry for the loss and you are involved.

SterlnBank @.77k

ihedioramma:
How much is it now ? . But any other small low price phone he can use to tread as he ask sir ? .

I suggested what am currently using. I dont know the current price. Then it was between 215k-220k. With my samsung Note4 back then, I was always having issues.

Note: I bought it because of trading

DOLLARTEX:
Please who can recommend a good phone to trade with morgancapital platform.

Samsung Galaxy S7 edge
If you can afford it.

feelamong:
Please Brethren......is this a good time to take Margin Loan to mop up UBA and FBNH?

My brokers have just dangled that bait to me now..

The interest rate will be one of the factors to make a better decision. Abi na interest free?

fxuser:
pls resend !

Resent. Please check

fxuser:
A blessed and Profitable Year Ahead , Let the trend guide you

Waiting for your response Sir

[quote author=Tritri post=52395789][/quote]Target for the year was 35%. I ended up at 27.4%. I thank God for his blessings. We are making more money 2017.
I want to appreciate everyone who has kept this thread alive.
I want to appreciate Intendy and Fxuser specially by paying for there next subscription (2,500 airtime each).
I will pm you within the weekend.
Thanks all.

It is not over until it is over.
We are making money this year

manlikegb:
@feelamong, @jesusbabygirl No, they have not invested the funds yet. That's how First bank operates. The moment you place a bid with them, they debit you that exact amount just to keep intact for the coming auction. If your bid is successful, then all good. But if not successful, then they will credit you back. Thats their own system.

This information is correct. It also applies on bonds