DMO Opens Offer for July FGN Savings Bonds

In a bid to deepen the national savings culture and provide an opportunity to all citizens irrespective of income level to contribute to national development, the debt management office (DMO), Monday opened the July 2018, two and three-year savings bond.

The bonds tagged Federal Government of Nigeria Savings Bond are being offered for subscription at 10.483 percent and 11.483 percent interest rates per annum respectively, with interest being payable quarterly.

The 2-Year FGN savings bond is due July 11, 2020, while the 3-Year FGN savings bond is due July 11, 2021, with the offer closing on Friday, July 6, 2018.

The DMO has also pegged Wednesday, July 11 as the settlement date, when the bonds will be credited to investors CSCS account domiciled with respective brokers.

The bonds N1,000 per unit is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

The bonds will enable all citizens to participate in and benefit from the favourable returns available in the capital market, as well as diversify funding sources for the Government.

The Bonds will be listed on the Nigeria Stock Exchange (NSE) for trading and provides liquidity for investors who want to exit before maturity.

The DMO advises interested investors to subscribe through stockbroking firms trading on the floor of the NSE and accredited by the DMO to act as distribution agents.

The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity, it is also good for savings towards retirement, marriage, school fees, house projects, etc., and is backed by the full faith and credit of the federal government of Nigeria.

Source: Business A.M