ASSOCIATED BOND NOTE (ABN)
Associated Bond Note (ABN) is a hybrid product deriving its value from a basket of issued FGN Bonds. It is a product combining the benefit of high yields on bonds with the flexibility of a shorter tenor. It therefore provides a unique opportunity to partake in the benefits associated with FGN BONDS.
- This is a derivative product of FGN bonds.
- It is an investment in a pool of FGN bonds.
- Minimum tenor is 30days.
- Obtain good return on investments and features of a bond
- holder without having to hold a bond till maturity.
A valid investment;
- May be short, medium or long term
- May have a target maturity date
- Expected future value is based on issuer grade and prevailing market conditions.
- Growth and safety rather than instant gain is the objective
- Through ADH, investors have the opportunities to invest in FGN bonds and
- Enjoy all the benefits of investing in FGN Bonds
- Invest for a shorter tenors
- All these are achievable through our “bond pool of funds”
- They are derivatives of FGN Bonds.
- Minimum investment amount is N100,000
- It is designed for customers who desire all the benefits of holding a bond but are only able to hold for shorter tenors
- This is an investment secured by the Federal Government of Nigeria (FGN) Bonds
- Rates are negotiable and subject to desired tenor. This is however based on market dictates (FGN Bonds in issue) as well as the volume of investment
- Interest income is not subject to taxes
- Obtain all features of a bond holder without having to hold to maturity.
- Custodial services on invested bonds can be provided by ADH.
- Suitable collateral for borrowing.
- Qualifies for statutory liquidity requirement for Banks and other Financial institutions
