The Debt Management Office (DMO) has accredited eighty-seven (87) stockbroking firms to market and distribute FGN savings bond in newest move by the Debt Office to deepen the national savings culture.
The bond 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.
The Offer for the savings bond opens on Monday, March 13, 2017 and runs for 5 days.
“Before now, we have been asking the Federal Government not to make investment in its bonds an exclusivity for the big boys and it appears that they have finally listened to us as the savings bond is what every investors can have,”an analysts said last night.
He said the savings bond offer is capable of reactivating the market. “This is one way to build confidence in the market because it carries the integrity of the Federal Government,” he added.
The Debt Office on behalf of the Federal Government of Nigeria recently introduced this retail savings product (the FGN Savings Bond) that will be accessible to all income groups.
Some analysts observe that returns from the savings bond will be competitive with the Treasury Bills (T-Bills), adding that the savings bond drops into Central Securities Clearing System (CSCS) and investors can easily trade when they wish.
“The savings bond will deepen the market because it enable all citizens to participate. It is aimed at reaching the grassroot evidenced in the number of accredited stockbroking firms,” one of them said.
He noted that savings bond will give investors regular and guaranteed returns, unlike equities with returns that fluctuate.
The FGN savings bond is aimed at providing opportunity to all citizens irrespective of income level to contribute to National Development.
It also enables all citizens participate in and benefit from the favourable returns available in the capital market; and to diversify funding sources for the Government.
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 with additions in multiples of N1,000 subject to a maximum of N50million. The Bond is backed by the full faith and credit of the Federal Government of Nigeria.
The stockbroking firms accredited by the Debt Management Office are: Afrinvest Securities Limited, FBN Securities Limited, Primera Africa Securities Limited, APT Securities & Funds Limited, FCSL Asset Management, Primewealth Capital Limited, ARM Securities Limited, Fidelity Securities Limited, Pyramid Securities Limited, Arthur Steven Asset Management Limited, Financial Trust Company Nigeria Limited, Qualinvest Capital Limited, Associated Asset Managers Limited, Finmal Finance Services Limited, Readings Investments Limited, and Bestworth Assets & Trust Limited.
The list also includes First Integrated Capital Management Limited, Regency Assets Management Limited, Calyx Securities Limited, Foresight Securities & Investment Limited, Reward Investments & Services Limited, Capital Assets Limited, Fortress Capital Limited, Securities Africa Financial Limited, Capital Bancorp PLC, FSDH Securities Limited, SFC Securities Limited, Capital Express Securities Limited, Futureview Securities Limited, Sigma Securities Limited, Cardinal Stone Securities Limited, Growth and Development Asset Management Limited, Signet Investment & Securities Limited, Cashcraft Securities Limited, GTI Securities Limited, Solid-Rock Securities & Investment Plc, and Cashville Investments & Securities Limited.
Other accredited stockbroking firms by DMO are: Harmony Securities Limited, Stanbic IBTC Stockbrokers, Century Securities Limited, Hedge Securities & Investment Company Limited, TFS Securities & Investment Company Limited, Chapel Hill Denham Securities Limited, Helix Securities Limited, Tiddo Securities Limited, Chartwell Securities Limited, ICON Stockbrokers, Trade Link Securities Limited, Cordros Securities Limited, Imperial Asset Managers Limited, Trust Yields Securities Limited, Coronation Securities Limited, Interstate Securities Limited, Trusthouse Investments Limited, Core Trust & Investment Limited, Kapital Care Trust & Securities Limited, Tyndale Securities Limited, Cowry Securities Limited, Kinley Securities Limited, Union Capital Markets Limited, and Crown Capital Limited.
Also included are Kofana Securities & Investment Limited, United Capital Securities Limited, Dunbell Securities Limited, Lead Securities & Investment Limited, Valueline Securities & Investments Limited, Dunn Loren Merrifield Securities Limited, Longterm Global Capital Limited, Vetiva Securities Limited, Dynamic Portfolio, Magnartis Finance & Investment Limited, Woodland Capital Markets Plc, EDC Securities Limited, Mega Equities Limited, WSTC Financial Services Limited, Edgefield Capital Management Limited, Meristem Stockbrokers Limited, EFCP Limited, Molten Trust Limited, El-Elyon Alliance & Securities Limited, Network Capital Limited, Elixir Securities Limited, Newdevco Investment & Securities Limited, Equity Capital Solutions Limited, Nigerian Stockbrokers Limited, FBC Trust & Securities Limited, and Planet Capital Limited.