FREQUENTLY ASKED QUESTIONS ON THE FEDERAL GOVERNMENT SAVINGS BOND (FGNSBs) 1. Is my investment guaranteed and what is the risk of default? Principal and returns on the Bond are guaranteed by the Federal Government of Nigeria and the risk of default is zero. How often will the Bond be issued and what will be the tenor? The Bond would be issued monthly and the instrument will have a tenor of two and three years respectively. When will the interest and principal be paid? Coupon payment would be paid quarterly into investors’ specified bank account while principal would be paid on maturity date. Can investments be made on a continuous basis? Yes, you can invest in each month’s issuance up to the maximum limit of N50,000,000.00. What is the Coupon rate on the Bond? The Coupon/interest rate is per annum and the rate would be announced by the Debt Management Office (DMO) on the first day of the offer period. What is CardinalStone’s role? CardinalStone Securities Ltd has been appointed as one of the Distribution Agents for the FGNSBs. Our role is to inform the general public about the Savings Bond, collate subscription forms of interested investors and forward these forms and monies to the DMO. 7. What type of investor can invest in the Savings Bond? The Savings Bond was created to financially include all types of investors ranging from salary earners, artisans, students, civil servants, etc. in the development of the Nigerian economy. Can I invest in the Bonds on behalf of my children or wards? Yes, you can invest on behalf of your children, wards, or relatives however, the BVN and bank account details stated on the subscription form must belong to the beneficiary. How do I open a Savings Bond account? You will be required to: Complete the FGNSBs subscription form Complete CardinalStone account opening form Provide valid proof of Identification Provide one passport photograph Provide a recent utility bill Kindly scan and send the documents listed above to brokerage@cardinalstone.com Will I be required to have a bank account? Yes, you would be required to have a bank account and also indicate your Bank Verification Number (BVN) on the subscription form to invest in the FGN Savings Bond. 2. 8. 3. 9. 4. 5. 10. 6.

FREQUENTLY ASKED QUESTIONS ON FGNSBs (Cont’d) 11. Will I receive a certificate or contract note for this investment? No, Bondholders will have their investments credited to their CSCS accounts. How soon will my investment reflect in my CSCS account Your investment will settle into your CSCS account on day T + 3 Days if the transaction is done in the Primary Market. Can I sell my Bonds before maturity? Yes, you can sell your bond holdings in the Secondary Market which is the Nigerian Stock Exchange. What do I need to do to trade the Savings Bond in the Secondary Market? Kindly fund your account with us for purchase transactions while proceeds for sale transactions would be credited to your bank account on day T + 2. Will I make or lose money if market interest rates change? No, you will not lose money if you hold the instrument till maturity. However, there may be a reduction or increase in the value of the bond if you sell in the secondary market before maturity depending on prevailing interest rates in the market. 16. What are the transaction costs? There are no transaction costs for buying the FGN Savings bond in the primary market (i.e. during the offer for subscription). However, transaction charges would apply if you buy or sell in the Secondary Market. What are the transaction charges for trading in the Secondary Market? The transaction charges applicable are brokerage fee of 0.5% of the face value of the bond traded and 0.0001% CSCS fee. How do I trade my Savings Bonds? Kindly send your trade instructions and enquiries to brokerage@cardinalstone.com to enable us execute your mandate. Can I view and trade my Bond online? Yes, you can view your account and also trade your Savings Bond via our online platform. Your online login details would be sent to you as soon as your account is opened. How do I know the price the FGN Savings Bond is trading in the Secondary Market? The price of the FGN Savings Bond will be published daily in major newspapers and on the website of CardinalStone and the Nigerian Stock Exchange. CardinalStone also sends out daily price list via email which will include the price of the Savings Bond. 12. 17. 13. 18. 14. 19. 15. 20. CardinalStone Securities Limited Lagos Office Abuja Office 5 Okotie Eboh Street 12 Dar Es Salaam Street Off Awolowo Road, Ikoyi Off Aminu Kano Crescent, Lagos | Nigeria Wuse II, Abuja | Nigeria +234 1 7100433, 7100444 | www.cardinalstone.com