The Debt Management Office (DMO), on behalf of the
Federal Government, has opened subscriptions for two Federal Government of
Nigeria (FGN) Savings Bonds, offering annual interest rates of 13.96 per cent
and 14.96 per cent.
According to the DMO, the first instrument is a
two-year FGN Savings Bond maturing on August 12, 2028, with an annual interest
rate of 13.96 per cent. The second is a three-year bond due on August 12, 2029,
offering an annual return of 14.96 per cent.
The subscription window opened on Monday and will
close on August 7, while settlement is scheduled for August 12. Coupon payments
will be made quarterly on November 12, February 12, May 12 and August 12
throughout the life of the bonds.
Investors can subscribe at ?1,000 per unit, with a
minimum investment of ?5,000 and additional purchases in multiples of ?1,000,
up to a maximum investment of ?50 million.
The DMO stated that interest will be paid every
quarter, while the principal investment will be repaid in full upon maturity.
The office also noted that the savings bonds are
backed by the full faith and credit of the Federal Government, making them one
of the government's debt instruments available to retail investors.
In addition, the bonds qualify as approved investment
securities under relevant Nigerian laws, are listed on the Nigerian Exchange
(NGX), and are recognised as liquid assets for banks when calculating liquidity
ratios.
The FGN Savings Bond programme is designed to give
individual investors and small-scale savers easier access to government
securities, allowing them to earn fixed returns while supporting government
borrowing through a relatively affordable investment threshold.
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