The Debt Management Office (DMO) recently disclosed a new offering of Federal Government of Nigeria (FGN) Savings Bonds, with a closing date set for November 10, 2023. These bonds are available in two-year and three-year options at a unit cost of N1,000.
The first offering comprises a two-year FGN savings bond maturing on November 15, 2025, with a competitive interest rate of 12.464% per annum. The second issuance involves a three-year savings bond maturing on November 15, 2026, offering an attractive 13.464% per annum interest rate.
Investors should take note of the coupon payment dates, which fall on November 15, 2023, February 15, May 15, August 15, and November 15, 2024. These bonds are available at N1,000 per unit, with a maximum subscription of N5,000 and increments of N1,000, following a full subscription of N50 million.
Interest payments occur quarterly, while the principal repayment takes place at maturity, with a settlement date scheduled for November 15, 2023.
Read also
It’s important to highlight that these savings bonds are secured by the full faith and credit of the federal government, utilizing the nation’s general assets as collateral. They are compliant with the Trustee Investment Act, making them a suitable option for securities trustees to invest in.
Furthermore, these savings bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for bank ratio calculations.
In October of this year, the Nigerian government introduced similar two-year and three-year savings bonds with an interest rate of up to 12%. The subscription window for these bonds was open for four days, closing on October 6, 2023. The bonds are set to mature on October 11, 2025, and October 11, 2026, for the two-year and three-year bonds, respectively.
Discover more from SMALL BUSINESS INSIGHTS
Subscribe to get the latest posts to your email.
