On BU$I₦£$$ DIG£$T this morning, September 8, 2021
OPPORTUNITY TO INVEST IN FGN BONDS
“In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.”- Wikipedia
In a more simpler terms, a bond is a contract between two companies. Companies or Governments issue bonds because they need to borrow large amounts of money. They issue bonds and investors buy them (thereby giving the people who issued the bond money). Bonds have a maturity date.
Someone would ask what is the difference between Treasury Bills and Bond?
Treasury Bills have maximum maturity of 360days(about a year) while Bonds have maturity of 2years, 3years, 5years. This is not the only difference, I just what to talk about bonds today.
Can we remember the Sukkuk Bond sold by FGN some years ago? Many people said it was going to be used to islamize Nigeria and I ask how can a financial instrument be used to achieve that?
Many of us invested in that and have been reaping from that investment via the quarterly coupon being paid and we can see some projects executed by the FGN, with the money we loaned them… So if you are one of the Creditors of Nigeria as a Nigerian show up here please. Not China Creditors oooo
Very recently as announced just on Monday September 6, 2021; the Debt Management Office (DMO) as stated below:
The circular posted on its website was titled ‘FG savings bond offer for subscription September,2021’.
According to the circular, the two-year FGN savings bond will be due for redemption on September 15, 2023 at 7.915% per annum, while the three-year offer will be due on September 15, 2024 at 8.915% per annum.
The offer opened on Monday, with a closing date of September 10.
While the settlement date is September 15, the bonds have coupon payment dates of December 15, March 15, June 15, September 15, according to the circular.
The units of sale are ₦1,000 per unit subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, subject to a maximum subscription of ₦50,000,000.
Talk to me for more information just in case just you like what you just read.
If you learnt anything from this, kindly share with someone out there.
_*Dr. Emmanuel Idenyi Shaibu*_
_animn, ace, f.hcd, f.dss, m.frcn, fimc, cmc, cms, FAiPA, DPA, ACCrFE_
The Millennium Entrepreneur