Bamboo Treasury Bills are short-term investments made by individuals or entities to the government. Investors purchase these bills at a discount to their face value, and upon maturity, the government repays the full face value to the investor.

Essentially, it involves lending funds to the Central Bank of Nigeria for a predetermined period, with the investor receiving both the principal and interest upon maturity.

What is Face Value? Face value or Par value is the guaranteed amount the government pays when your treasury bills investment reaches its maturity date. This means this is the amount the investor will receive at maturity.

What is Discount Rate? This is the rate used to determine the discount at which the treasury bill is sold below the face value. This means it is the rate used to determine the present value or discounted value of the investment. Rates are indicative and will be updated if need be, to reflect market realities.

What is the Custody Fee? A custody fee of 0.75% is charged by RMB nominees who are the third-party custodians that safe keep all Treasury positions.

What is the Effective Yield? This refers to the actual return on your investment taking into account the compounding effect.