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GOVERNMENT BOND SECURED INVESTMENT (GBSI)

This product enables you to enjoy the security of investing in Federal Government Bonds at competitive rates with the added value of flexible and short tenors i.e. without the compulsion of investing for the minimum tenor of 3 years. Kakawa gives you the option of investing for a minimum of 30days.

Features/ Benefits

1. Amount: Minimum investment of =N=1,000,000.00
2. Minimum Tenor: 30days
3. Interest Rate:(negotiable)
4. Security: Backed by the Federal Government of Nigeria
5. Rediscounting Facility / Liquidity: Though the Government Bonds cannot be rediscounted at the CBN, KAKAWA will be willing to rediscount the Government Bond Secured Investment for you at an agreed fee after running for a minimum period of 30days.
6. Custodial Services: Physical certificates will not be issued for all Government Bond Secured Investments since physical bills cannot be traded in the secondary market. KAKAWA will hold the bills in custody on behalf of the customer. However, KAKAWA will issue a confirmation of investment certificate and will at your instance, confirm to the Central Bank in writing that the Bonds are pledged to you. This means for regulatory reasons, they will count as part of your securities holding.
7. Tax Incentive: The investment will not be subject to withholding tax or VAT deductions.
8. Collateral/Bank Guarantee: If the need ever arises, KAKAWA will give an undertaking to other institutions that the Investment can be used.

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