The Federal Government of Nigeria Savings Bond (FGNSB) The FGN Savings Bond offers 2-Year and 3-year tenor

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Ronald Gaines
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1 Dear Investor, CAPITAL BANCORP PLC The Federal Government of Nigeria Savings Bond (FGNSB) The FGN Savings Bond offers 2-Year and 3-year tenor FGN savings bond opens % & % We write to inform you about the Federal Government of Nigeria Savings Bond which opens today, Monday the 11 th of September The bond subscription period will run from 8.00am on Monday the 11 th of September 2017 till noon Friday, the 15 th of September The Savings Bond will have most of the features of the existing FGN Bond plus other features/benefits to the bondholder. It will be backed by the full faith of the Federal Government of Nigeria and is therefore deemed risk free. For the September edition the federal government of Nigeria will be offering two different tenors (2 and 3 years); at different interest rates while other features of the bond remains the same. The investor can decide to invest in one of the tenors or both tenors at the same time. Features of the 2-Year and 3-year FGNSB due September 20, 2019 and September 20, 2020 respectively: S/N Subject Features 1. Interest / Coupon rate 2-year % 3-year % 2. Tenor 2 - year 3 - year 3. Interest / Coupon payment Coupon will be paid quarterly while the principal will be paid at maturity 4. Transfer and Custody Agent Central Securities Clearing System Limited 5. Settlement Bond holders will have their holdings credited into their CSCS Account. (In the event a customer purchases the Bond but does not have a CSCS account or inputs a wrong account number on the form, his / her holdings will be credited into a Custodian account domiciled with the CSCS till the account is opened or the mistake is rectified. 6. Settlement Date 20 September 2017 (T+3) 7. Subscription Amount Minimum of N5,000 plus multiples of N1,000 and Maximum of N50,000, Subscription Period Monday September 11 Friday September 15, Listing The Bond will be listed and tradeable on The Nigerian Stock Exchange 10. Next Auction (Tentative) October 9 13, Subscription Mode Investors are to subscribe through stockbroking firms accredited by the DMO to act as distribution agents. (Capital Bancorp Plc is one of the DMO accredited stockbroking firm investors can subscribe through). CAPITAL BANCORP PLC Page 1 of 3

2 The Federal Government of Nigeria Savings Bond (FGNSB) Benefits of FGNSB: It offers better returns than interest rates currently being paid by banks on savings accounts Steady source of income as coupon will be paid quarterly. It offers capital preservation as the Bondholder needs not worry about losing his/ her capital if held to maturity. Provides an alternative source of portfolio diversification Interest income from investments are tax free The investment can be used as collateral for a loan from Bancorp Finance (one of our subsidiaries) and other sources. It helps investors save towards larger investments or retirement Coupons can be reinvested to increase holdings and yield to maturity. How to Apply and Make Purchase Open a stockbroking / CSCS account with Capital Bancorp Plc (Advisable to be done before auction date) Fill and submit the Subscription form for each tenor separately (Please use the new form attached or on our website) Credit Capital Bancorp bank account with the said amount (To make reconciliation of payments easy, kindly state the full names of beneficiaries and FGNSB in all payment instructions. Also remember to include bank charges to any payment made into our accounts) Acct. Name: Capital Bancorp Plc Bank: First Bank of Nigeria Acct. No On settlement date (September 20 th 2017) CSCS credits investors account with volume of bonds purchased *please note that payments for the bond purchase should be made into Capital Bancorp Bank account as cash payments to account officers/individuals are not accepted. Transaction Cost Primary Auction: There are no charges for purchases made through the primary auction Secondary Market: A transaction cost of 1% of total face value will be charged for secondary market Buy / Sell transaction while CSCS will charge %. All forms required to open an account and apply to purchase the instrument are available on our website (Kindly fill and submit electronically (stockbroking@capitalbancorpng.com) or to any of our locations the completed stock broking account form and the Final Subscription Form FGNSB). CAPITAL BANCORP PLC Page 2 of 3

3 The Federal Government of Nigeria Savings Bond (FGNSB) Call us now For further information kindly contact any of our staff below: Lagos Office: 1. Seun or 2. Bode or 3. Kunbi or 4. Tosin or Port Harcourt Office: 1. Promise or 2. Oluchi or Contact Person in Ibadan: 1. Abiodun or Don t Miss Out. For more information contact: Capital Market/Research Department, Capital Bancorp Plc 3rd Floor, UNTL House 1, Davies Street Off Marina, Lagos research@capitalbancorpng.com CAPITAL BANCORP PLC Page 3 of 3

Offer for Subscription DEBT MANAGEMENT OFFICE NIGERIA Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP.

4 Offer for Subscription DEBT MANAGEMENT OFFICE NIGERIA Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria Savings Bond at the following interest rates 2-Year FGN Savings Bond due September 20, 2019: % per annum 3-Year FGN Savings Bond due September 20, 2020: % per annum Opening Date: Closing Date: Settlement Date: Coupon Payment Date: September 11, 2017 September 15, 2017 September 20, 2017 December 20, March 20, June 20, September 20 SUMMARY OF THE OFFER STATUS: ISSUER: Federal Government of Nigeria ( FGN ) UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000. INTEREST PAYMENT: Payable Quarterly REDEMPTION: Bullet repayment on the maturity date 1. Qualifies as securities in which trustees can invest under the Trustee Investment Act. 2. Qualifies as Government securities within the meaning of Company Income Tax Act ( CITA ) and Personal Income Tax Act ( PITA ) for Tax Exemption for Pension Funds, amongst other investors. 3. Listed on The Nigerian Stock Exchange. 4. Qualifies as a liquid asset for liquidity ratio calculation for banks. SECURITY: Backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria. INTERESTED INVESTORS SHOULD CONTACT THE STOCKBROKING FIRMS APPOINTED AS DISTRIBUTION AGENTS BY THE DEBT MANAGEMENT OFFICE. PLEASE VISIT FOR THE LIST OF DISTRIBUTION AGENTS.

5 . To: Director-General, Debt Management Office, Abuja DEBT MANAGEMENT OFFICE NIGERIA No: Official use only SUBSCRIPTION FORM FOR FEDERAL GOVERNMENT OF NIGERIA SAVINGS BOND (FGNSB) Applications must be made in accordance with the instructions set out on the back of this application form. Care must be taken to follow these instructions as applications that do not comply with the instructions may be rejected. If you are in any doubt, please consult your Stockbroker, Banker, Solicitor, or any professional adviser for guidance. In response to the advertisement in both print and electronic media, I/We hereby offer my/our subscription for FGNSB A B Tenor of Bond: 2-Year 3-Year Please tick ( ) the relevant box Guide to Applications Minimum Value: N5, Multiple therefore: N1, Maximum Value: N50,000, Amount in Words: Month of Offer: Value of Bonds Applied for N M M Y Y Y Y E-allotment Details Applicant s CSCS A/C No. Applicant s CHN No. C 1. Individual Applicants (to be completed in block letters) Full Name (Surname first) (State titles if any e.g. Mr., Mrs., Miss) Occupation: Joint Applicants (to be completed in block letters) Full Name (Surname first) (State titles if any e.g. Mr., Mrs., Miss) Occupation:... SAMPLE x x x x x x x : Next of Kin:... Address:....:... Passport No:... Date of Birth:... Mother s Maiden Name:... Address:... Name of Bank:... Next of Kin:... Address: Address:... Name of Bank:... Usual Signature:...Date:... Usual Signature:... Date:... Residency classification of Applicant (tick the Appropriate box) Resident Non-Resident (Residency classification of Applicant must be indicated) Residency classification of Applicant (tick the Appropriate box) Resident Non-Resident (Residency classification of Applicant must be indicated) 3. Corporate Applicants (to be completed in block letters) Company s Name:... Type of Business:...R/C No:... Address:...: Passport No:... Address:... Contact Person:... Phone No: Signature:.... Signature:... Name of Bank:... Bank Account No: BVN: (For interest payment purpose) Investor Category of Applicant (tick the appropriate Box) Individual Insurance Corporate Others *Foreign Investor Non-Bank Financial Institution Co-operative Society C Witness: Thumb print of illiterate applicant I have given detailed explanation to this applicant in the language understood by him and consequently the applicant has a clear understanding of the transaction he has entered into. Signature: D DISTRIBUTION AGENTS Signature:... NAME OF DISTRIBUTION AGENT:..... Government Agencies Staff Scheme Micro Finance Bank STOCKBROKER CODE:... * All foreign investors should tick only this box (Investor Category of Applicant must be indicated) Stamp of Receiving Agent Please affix company seal and RC Number

6 INSTRUCTIONS FOR COMPLETING THE APPLICATION FORM 1. Applications must be made only on the official form as prescribed by the Debt Management Office. 2. Applications must be for a minimum of N5, and thereafter, in multiples of N1,000.00, but subject to a maximum of N50, million. The value of the bonds applied for should be entered in the appropriate box. 3. The Application Form, when completed, should be lodged with a Distribution Agent. Applications must be accompanied by full payment for the amount applied for, which must be paid to the Stockbroker/Distribution Agent at the time of submission. Payment may be in any form acceptable to the Distribution Agent. 4. Applicants should note that No Charges or Fees would be paid by investors. 5. For the purpose of this application, residency classification refers to the country where the Applicant(s) permanently resides as at the time of filling the Application Form, Applicant(s) must indicate his/their residency classification in the appropriate box provided. 6. For joint applications, information on the Applicants should be provided in the appropriate boxes. However, all correspondence will be addressed to the first named Applicant. 7. An application by a firm, which is not registered under the Companies and Allied Matters Act, should be made either in the name of the proprietor or in the names of the individual partners. In neither case should the name of the firm be mentioned. 8. An application from a corporation must bear the corporate body s seal and be signed in accordance with the company s signature mandate by duly authorized officials. A corporate stamp may be used where the corporate seal is not available. 9. An application by an illiterate person should bear his right thumb print on the Subscription Form and be witnessed by an official of the Stockbroking firm or Receiving Agent at which the application is lodged, who must first have explained the meaning and effect of the application to the illiterate person in his own language. The witness should indicate his name and signature in the appropriate box. 10. The applicant should not print his signature. If he is unable to sign in the normal manner he should be treated for the purpose of this offer as an illiterate and his right thumb should be clearly impressed on the Subscription Form. FEDERAL GOVERNMENT OF NIGERIA (FGN) SAVINGS BOND APPLICATION FOR SUSCRIPTION FORM

7 OUR VISION STATEMENT: A Professional Investment Banking and Securities firm creating wealth and delivering superior value for all our stakeholders. OUR MISSION STATEMENT: We empower our clients and Stakeholders through the provision of Innovative Professional services. OUR SERVICES INCLUDE: Capital Markets: - Stockbroking Ý Þ ²½± Ð ½ò RC Issuing House Financial Advisory Asset Management Credit Services: - Investment Services: - Credit Advisory Short Terms Loans Equipment Leasing Money Market Securities Trading Wealth Management Portfolio Management Bureau De Change Services. Account Opening Requirements. 1 Duly completed Account Opening Form Two (2) clear recent passport-size photographs of each signatory to the account with their names and signature written on the 2 reverse side 3 Identification of signatories: International Passport, Driver's license or National ID Card. (Originals to be sighted) 4 Public Utility Receipt: Electricity Bills, Water Bills or Telephone Bills bearing current address (Originals to be sighted) 5 Mandatory Initial Deposit Additional Requirements for Corporate Accounts 1 Certificate of Incorporation (Original to be sighted) 2 Memorandum and Articles of Association (certified true copy) by the Registrar of Companies and a Director of the company 3 Form C07 CAC Certified true copy 4 Board resolution authorizing the opening of account. Ý Þ ²½± Ð ½ Please Turn Over 1

8 Please complete all details in CAPITAL letters. Ý Þ ²½± Ð ½ò RC (INDIVIDUAL / CORPORATE) I / We wish to open the following account and undertake to comply, observe and be bound by the General Terms and Conditions included in this form. Account Type: (Please tick as appropriate): Surname : Stockbroking Investment Credit ACCOUNT DETAILS (INDIVIDUAL) First Name : Middle Name : Contact Address (Not P. O. Box): Postal Address: Sex: Male Female Place of Birth: Date of Birth: / / DD MM YYYY Marital Status : Married Single Others State of Origin: Nationality : Local Government: Mobile Number: Profession: address: EMPLOYER/ BUSINESS DETAILS Employer s Name /Address: Employment Type: Salary: Self Employed: Others: Would you want to have access to your account on the web: Yes: No: Account Holder s Source of Funds: Specify the valid proof of Identification submitted Identity Details: Driver's License: International Passport: National Identity Card: Ý Þ ²½± Ð ½ Please Turn Over 2

9 Ý Þ ²½± Ð ½ò RC (INDIVIDUAL / CORPORATE) Specify the valid proof of Address submitted: ADDRESS DETAILS: Utility Bill: Voters Card: Client Bank Account Statement: CLIENT S BANK ACCOUNT DETAILS: Name of Bank: Sort Code: Account Name: Account Creation Date Account Number: OTHER DETAILS Tax Identification Number (Individual / Corporate): Mother s Maiden Name: Spouse s Name: Spouse s Address: NEXT OF KIN: Name: Relationship with Next of Kin: Contact Address: Telephone: -address: (1) I confirm the identity and address of the applicant(s) Referee s Name: Contact Address REFEREE DETAILS: CAUTION IT IS DANGEROUS TO INTRODUCE A PERSON WHO IS NOT WELL- KNOWN TO YOU Signature: Telephone Number: (2) I confirm the identity and address of the applicant(s) Referee s Name: Contact Address Signature: Telephone Number: Ý Þ ²½± Ð ½ Please Turn Over 3

10 S/N 1 Ý Þ ²½± Ð ½ò RC (INDIVIDUAL / CORPORATE) SIGNATORY (IES) TO THE ACCOUNT: NAME SIGNATURE 2 3 Paste here a recent passport size photograph of the first holder/trading account holder and he / she must sign halfway across the photograph and application form Paste here a recent passport size photograph of the first holder/trading account holder and he / she must sign halfway across the photograph and application form Paste here a recent passport size photograph of the first holder/trading account holder and he / she must sign halfway across the photograph and application form Ý Þ ²½± Ð ½ Please Turn Over 4

11 Ý Þ ²½± Ð ½ò RC (INDIVIDUAL / CORPORATE) GENERAL TERMS AND CONDITIONS 1 ACCOUNT OPENING: 1.1 In order to open and maintain Stockbroking account, the Client shall provide the Company with the documents set out in the Documentation Checklist in order to prove the personal or corporate identity of the Client as required by Nigerian law, or such other documents as may otherwise be reasonably required by the Company or by Nigerian law. 1.2 The Client shall follow the documentation and disclosure requirements in accordance with the requirements of the Money Laundering Prohibition Act 2011 as modified from time to time or any other applicable law or regulation in that regard as may be made from time to time. 2 POLITICAL EXPOSED PERSON - PEP The Money Laundering Prohibition Act 2011 and Terrorism Act 2011 require that all our clients declare if they are politically exposed. Politically Exposed Persons (PEP) represents those clients holding political office in Nigeria or elsewhere or their immediate family members. If applicable, please state below: Full Name : Relationship with PEP: Political Position Held: Level (Federal/State/ Local Govt.): Name of State/Local Govt.: Date Appointed / Elected 3 SET OFF I/We agree that CAPITAL BANCORP PLC may, at any time without notice, notwithstanding any settlement of account of other matter whatsoever combine or consolidate all or any of my then existing account(s) opened in my name, relations, children, spouse or company (ies) names and set off, appropriate or transfer any sum(s) standing to the credit of any of such accounts towards satisfaction of any liabilities be it present or future, actual or contingent, primary or collateral and several or joint. 4 FUNDING ACCOUNTS IN DEBIT POSITION: If for any reason CAPITAL BANCORP PLC authorizes the execution of our validly executed mandate when at the material time the account does not have sufficient funds to accommodate the value of the transaction, (and the said account is thereby thrown into debit) we agree that an overdraft position is thereby created. Any sum or sums standing to the debit of our account as a result of this overdraft position shall automatically be liable to interest charges at a prevailing market rate. You are authorized to debit the account with your usual charges, commission and interests for such facilities. 5 UNDERTAKINGS The Client undertakes to bear the costs incurred in connection with conducting a Search at the Corporate Affairs Commission for the purpose of verifying the authenticity of information supplied by the Client and the Client authorizes the Company to debit its Account for such costs. In the same manner, the Client will authorize the Company to debit its account for the cost incurred by the Company in verifying the validity of Letter of Administration (issued by High Courts in Nigeria) supplied for opening Estate Account. 6 ERRORS The Company reserves the right without prior notice to reverse any entries made in error to the stockbroking account of the clien 7 DECLARATION: I/We declare that the information given in the account opening forms is true and correct. We agree that any information found to be false may cause CAPITAL BANCORP PLC to decline the application or close the account if it has been opened. Should any details change in the future, e.g. address, name of Company etc., I/We shall inform you promptly. I/We note that CAPITAL BANCORP PLC shall not bear any responsibility or liability whatsoever for funds handed to members of staff for any cash payment into Clients accounts. SIGNATURE: DATE: Ý Þ ²½± Ð ½ Please Turn Over 7

12 Ý Þ ²½± Ð ½ò RC (INDIVIDUAL / CORPORATE) GENERAL TERMS AND CONDITIONS 8 Investment Knowledge and Experience: A. What is your knowledge and experience on investments? Please tick the applicable: (i-iv). (i) Minimal. I know bank deposits, Treasury Bills and Money Market placements. (ii) Low. Outside deposits and short term government securities, I have experience investing in money market funds such as corporate bonds and fixed income bonds. (iii) Medium. I have experience investing in mutual funds, foreign currencies and direct investment in listed stocks and bonds. (iv) High. I have an extensive experience in investing and have a broad understanding of the domestic and global capital markets in general. B. How many years of experience have you had investing in securities, either directly or through a fund manager? Please tick the applicable: (i-iv). (i) 1 year or less (ii) More than 1 years up to 5 years (iii) More than 5 years up to 10 years (iv) More than 10 years 9 Risk Tolerance: What is your tolerance for risk? Please tick the applicable: (i-iv). (iii) I accept a fair amount of fluctuation in the principal amount of my investments in order to achieve above average returns and capital growth over the medium term. (iv) I am prepared for a high degree of volatility and possibly losses for certain periods in the principal amount of my investment in order to achieve high returns or capital growth over a period of 5 years or more. 9 Risk Tolerance: If the value of your portfolio decreased by 12% in one year, how would you react? Please tick the applicable: (i-iv). (i) I will be very concerned and will immediately put my investment back to cash (i.e. in the form of deposits and/or short term government securities). (ii) I will be very concerned and will find safer investment outlets, which are not necessarily cash. (iii) I will be concerned and will review the aggressiveness of my portfolio. (iv) I will NOT be concerned about the short-term fluctuation of certain investments in my portfolio. Ý Þ ²½± Ð ½ Please Turn Over 8

13 1 Client s Cash Account Number: Ý Þ ²½± Ð ½ò RC ACCOUNT RECOMMENDED FOR CREATION: 2 CSCS Account Number: 3 Client Introduced By: 4 Account Officer s Name: 5 Signature of Account Officer: 6 New Account Approved by Head of Department: Signature Date 7 Account Verified By Head Compliance / Risk Management Signature Date Ý Þ ²½± Ð ½ Please Turn Over 9

14 Ý Þ ²½± Ð ½ò RC ACCOUNT RECOMMENDED FOR CREATION: DOCUMENTS TO BE SUPPLIED S/N INDIVIDUAL ACCOUNT: YES( ) NO(X) Duly completed Account Opening Form. Two (2) recent passport-size photographs of the client. Identification of Signatory(ies) International Passport / Driver s License / National Identity Card. - Ñ ¹ ² ± ¾» ¹»¼ 4 Address Confirmation -Public Utility Bills (PHCN Bill, Water Bill, Telephone Bill) - Ñ ¹ ² ± ¾» ¹»¼. S/N CORPORATE ACCOUNT: YES NO Duly completed Account Opening Form. Two (2) recent passport-size photographs of the client. Identification of Signatory(ies) International Passport / Driver s License / National Identity Card. øñ ¹ ² ± ¾» ¹»¼ Address Confirmation -Public Utility Bills (PHCN Bill, Water Bill, Telephone Bill) Ñ ¹ ² ± ¾» ¹»¼ò Copy of Certificate of Incorporation Memorandum and Articles of Association -½» º»¼ ½± Form C07 - Particulars of Directors of the company ½» º»¼ ½± ò Board Resolution authorizing the opening of account. Banker s Confirmation for Referee(s) Corporate A/C only. Ý Þ ²½± Ð ½ Please Turn Over 10

CORPORATE INVESTMENT APPLICATION FORM

SMADAC SECURITIES LIMITED (RC 460957) CORPORATE INVESTMENT APPLICATION FORM Full Company s Name: Company s Address: Postal Address: Date of Incorporations: Nature of Business: Total Asset Size: RC No.: