BY Nse Anthony-Uko
ABUJA, (Sundiata Post) – The Debt Managment Office (DMO), on Wednesday, listed the N2.067 billion Series one of the FGN Savings Bond on the daily official list of the the Nigerian Stock Exchange (NSE) and to be traded on the Exchange’s Retail Bonds Market.
The Savings Bond, was opened to investing public by way of offer for subscription over a five day offer period on March 13, 2017 to March 17, 2017 and N2.067 billion was raised from the retail market at 13.01 percent coupon.
DMO on behalf of the FGN has exclusively listed FGN Savings Bond on NSE Retail Bond Market. The benefits of the bond amongst others is to help enhance the savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to National Development; as well as the comparatively favourable returns available in the Capital market.
To ensure the offer reaches the last mile subscribers, the DMO accredited 87 stockbroking firms of the NSE to market and distribute the savings bond.
Speaking at the listing of the bond, yesterday, on the NSE in Lagos, the director-general of DMO, Mr. Abraham Nwakwo, said that “Over a year ago the NSE mention the possibility of introducing a retail bonds and we start working on it, with the team on NSE, Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other agencies that are relevant.”
He noted that this has brought about the successful issuance of the first FGN Saving bond, from the federal government meant for everybody in the country, noting the federal government has exercise the need to ensure that all the progress been made on the economic will be inclusive.
He added that the objective of the bond is been achieved from the beginning as noted by the government stockbroker in terms of bid, also about 95 per cent were from average individual Nigerians, saying this means the average Nigerians dominate the FGN Saving Bonds.
“This shows that the initiative been taken by the financial system, NSE and all players including stock broking community yielded fruits in term of financial inclusiveness.
He added that the good thing about the bond is that it will be issued every month.
Commenting on the listing, the executive director, Capital Markets, NSE, Haruna Jalo-Waziri, said “We are pleased to list the series 1 of this innovative investment offering that caters to the retail segment of the Nigerian Capital Market. The offtake of the first tranche underpins the efforts of the Federal Government to continue to work with stakeholders to deepen the Capital Market whilst delivering value to investors at all income levels. We look forward to continue the collaboration with DMO to list subsequent series of the Savings Bond.”