₦airaland Forum

mrkels:
They ll charge you custodian fee of the face value or maturity value.

battleaxe:
@pipz

So if I invest say 1million at 10% for 364 days, which gives me interest of about 100k(actual interest is 99.7k), what would the bank charge be?

0.125% of 100k = 125 naira Or 0.125% of 1million =1,250 naira?

I need to clarify if yield means interest. Please give your insider tips.

Thanks.

Bluekapon:
Please, what are the expected rates?

Bluekapon:
Please, what are the expected rates?

CoCoLav:
They were sued and that's the name on the process. Its Emerging Technologies Communication services ltd.

walemadu:
heard proceeds from Etisalat is used to fund islam and terrorist organisations like alqaeda, boko haram and isis

L0nestar:
I just finished sending a complaint to GTB customer care iro FGN Bond maturing 23rd April.2015 the principal of which has
not been paid when I stumbled on this post.
At maturity, the investor will fill a form called Repayment Form specifying the bank and account number into which the CBN will repay the principal into.

Another unethical move. You are not supposed to fill any form whenever your Bonds or Tbills mature. They one you filled when you invested should state credit my acct with my money at maturity shikena. The bank is using ur money for their biz telling you to come and fill a form for them to credit ur money to ur acct!!!! Haba Naija Banks. Pls if any one gets this type of service. Kindly report the bank or financial institution to CBN. They only time you have to write a letter of redemption or fill any form is when u are liquidating the investment before maturity and when you request to start the investment.

But note again. There might be technical issues for them to credit your acct with these proceeds or their waiting for the trade to settle. But these are local securities hence settlement shouldn't be more dan T + 2

tonylistic:
pls how can I buy share now am interested in it .how can I meet a stockbroker

Angelstartups:
Hello @kennyzboy,

Federal Government Bonds (also referred to as FGN Bonds) are long term fixed income investment vehicle (option) that are classified as almost risk-free. Because the risk is close to zero, the returns are also very predictable and fixed.

The returns on FGN bonds are called COUPONS and coupons are paid twice in a year.

The Government raise bonds through the DMO (Debt Management Office) who deal directly with Primary Dealers (agents) who on-wards sell to Other registered dealers (secondary) who then sell to retail/ institutional investors. These Primary dealers are limited in number because DMO cannot be opened to every retail or institutional investor/ trader and therefore the DMO has guidelines that these Primary Dealers must abide by before they can be registered.

The Government raise bonds to finance capital projects for the benefit of its citizens and few other reasons (example: to mop up excess liquidity within the system to curb inflation).

So how does it work really? Let me use the example you have sighted here:

If Kennyzboy invests N10m in a 5 year FGN bond at a coupon rate of 15%, it means:
Coupon=15/100*10,000,000=N1,500,000
Therefore, every 6 months after, kennyzboy will receive N750,000 in his bank account till the end of 5 years when Kennyzboy will receive N750,000 and your Principal N10,000,000. (note your bank will take a small commission for the transaction).

To put it in context, let's assume Kennyzboy invest N10m in 5-year FGN bond at 15% in June 2015 (to mature in June 2020), Kennyzboy will receive coupons as follows:
N750,000 in December 2015, N750,000 in June 2016
N750,000 in December 2016, N750,000 in June 2017
N750,000 in December 2017, N750,000 in June 2018
N750,000 in December 2018, N750,000 in June 2019
N750,000 in December 2019, N750,000 in June 2020 plus N10million Principal payment.

Hope this gives you some idea about how Bonds work.

Cheers.

seye4nii:
would like to know why those guy always insist that we should do fixed deposit same thing happen to me at first bank yesterday infarct
the guy told me that the interest rate deference is not much but i insist that i have some Guru bosses on nairaland that said t bill is better than Fixed deposit maybe they get commission for changing peoples mind?

ummitoagirl:
I may need to change my bank oh...This one that Ecobank dictates what % we can bid. It's ridiculous... for 91 days 8% is the max we are permitted to bid and for 182days, its only 11%...
I have become oloju ko koro...I enjoyed my 14.50% for 182 days I got the last time. I cant deal with this small %
Still thankful though.

kennyzboy:
Hello guys there is a thread on FG bonds already;

https://www.nairaland.com/2236356/investing-federal-government-bonds-nigeria#32331830

battleaxe:
Hello house,
Please, I need clarification on the bank charges for treasury bill primary auction purchase? Is it 0.125% of the principal or 0.125% of the yield (i.e. the interest)? What other fees are usually charge?

Also, is the charge the same for purchase from secondary market?

Are these fees different from bank to bank? I ask as my colleagues have all mentioned different charges from their banks.

Thanks.

Chudymario:
I appreciate the great investment gurus in the house. Please, I have a little question to ask. I filled a Tbills form with First Bank just a day after the last auction instructing them to debit my account for today's auction. The fund was debited two days later without receiving the interest upfront as expected (The alert specified it was for Tbills on a 91days tenor) . I assumed probably the fund needed to leave my account against the next bid. However, I called the officer in charge to verify the position of things, but he has not been picking my calls. I serve in a very rural area, thus it will take serious planning for a journey to visit the bank again. My question is :
1.) Is it right to deduct funds a week plus to the auction date?
2.) Am I not meant to receive my upfront interest today suppose my bid was placed today and it was successful?

htconeline:
I just receive call from unionbank that treasure bill will not be issue these week......house how true is these,this pipo have been playing with my gentleness.

htconeline:
I just receive call from unionbank that treasure bill will not be issue these week......house how true is these,this pipo have been playing with my gentleness.

chillybrandy:
It seems this people don't pay tax. If not they won't be flaunting it. Nice cars though.

popiong:
you are right and he was the former CEO of UBA before their merging with standard trust bank

CoCoLav:
Emerging Technologies Services Ltd

folabayo1:
Banky why u no carry me go wit u na?