Federal Government of Nigeria Bond

50% of the Face Value of the Bond.
N1 Million and in N100,000 multiple.
  1. Send an email mandate for the FGN Bond purchase
  2. Thebrooksecurities advises on FGN Bond availability stating price/yield.
  3. Client funds Thebrooksecurities Finance and Investment
  4. FGN Bond is purchased for the client and advice is sent accordingly.
  1. Guarantees fixed biannual income
  2. Lesser price volatility compared to Equity investment.
  3. Tradable before the maturity date.
  4. Higher rate of return compared to Bank Deposit.
FGN Bonds are long-term Debt instruments issued by the Federal Government of Nigeria with tenors which are typically over 3 years. They are issued on a monthly base however with a minimum investment size of N50,000,000. FGN Bond is different from the Federal Government of Nigeria Savings Bond (FGNS Bond) issued every first week of the month for tenors of 2 and 3 years and with N5,000 minimum investment. Though the FGN Bond is issued in a large ticket size during the monthly primary auction, it trades in the secondary market in smaller sizes. Interest Payment on FGN Bonds are made biannually unlike the FGNS Bond where interest payment is made quarterly. FGN Bonds are normally issued at N100 par value. Where the yield (return to investor) on a Bond is lower than the coupon such a Bond is said to trade at a premium price ie the price is above N100. Where the yield (return to investor) on a Bond is higher than the coupon rate the Bond trades at a discount ie price is less than N100. Bond would normally trade clean (without interest consideration) but settle dirty (with interest consideration). Bonds issued in the primary market are tradable in the secondary market thus clients can purchase such Bonds of various maturities.