FG’s Savings Bond Opens Today At 14.54%
The federal government’s savings bond which started since March 2017, will today be open for subscription for the month of August.
The Nigerian government plans to offer for subscription two-year and three-year Savings Bonds to investors at 13.54% and 14.54%, respectively.
A statement issued by the Debt Management Office in Abuja on Sunday said the two-year bond would be due in August 2019, while the three-year bond had a maturity date of August 2020, adding that the offer would end on Friday.
The offer has a minimum subscription of 5,000 Naira, with increases thereafter in multiples of 1,000 Naira up to a maximum subscription of 50 million Naira.
According to the DMO, the bond is backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
This is also part of government’s attempt at raising more money to fund the 2017 budget deficit.
The FGN Savings Bond is targeted primarily at retail investors to enable them contribute to the development of the country, while also earning good return on investment in a sovereign instrument.
The FGN Savings Bond was introduced by the DMO in March 2017. It is issued every month through stockbroking firms trading on the Nigerian Stock Exchange.
Since its introduction, the FGN Savings Bond has attracted a lot of new investors to the FGN Securities market with its attractive features.
The income earned on the FGN Savings Bond is exempted from taxes. It can also be traded in the secondary market on the NSE.