The Federal Government on Monday offered for subscription 2-year savings bond at 13.18% and 3-year savings bond at 14.18%, the Debt Management Office (DMO) has said.

The rates are all below the inflation rate which stood at 17.26% at end of March.

According to the offer circular derived from the DMO website, the 2-year bond will be due in May 2019 while the 3-year bond will be due in May 2020.

It, however, did not state how much was offered, but added that the maximum subscription was 50 million Naira at 1,000 Naira per unit, subject to minimum subscription of 5,000 Naira and in multiples of 1,000 Naira.

The website said that the bond was fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

The savings bond issuance is expected to help finance the nation’s budget deficit.