Subscription For June Savings Bonds Has Started
The savings bonds need little introduction by now. It started since March last year and it is targeted at retail investors.
The bond is issued by the Debt Management Office, DMO on behalf of the Federal Government every month.
On Monday, the DMO offered for subscription a two and three-year savings bond at 10.344% and 11.344% respectively.
According to document obtained from the DMO website, the two-year savings bond will be due in June 2020, while that of the three-year will be due in June 2021.
When it was launched, the maximum subscription was 50 million at 1, 000 Naira per unit, subject to minimum subscription of 5, 000 Naira and in multiples of 1, 000 Naira, with interest to be paid on a quarterly basis.
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The Debt office said the bond offer is part of the Federal Government’s programme, targeted at the lower income earners to encourage savings and also earn more income (interest), and compared to their savings accounts with banks.
The savings bond issuance is expected to help finance the nation’s budget deficit.
The bond was fully backed by the full faith and credit of the Federal Government, and charged upon the general assets of the county. It will close on Friday 8 June 2018, the DMO said.
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