Market News

By Joseph Chibueze, Abuja

The Debt Management Office (DMO) has opened a subscription for two Federal Government of Nigeria (FGN) savings bonds at N1,000 per unit.

The first offer is a two-year savings bond due to mature on April 16, 2027, at 16.046 per cent interest rate, while the second is a three-year savings bond due to mature on April 16, 2028, at an interest rate of 17.046 per cent.

The offers are tailored and targeted at retail investors with guaranteed quarterly interest payments and repayment of the principal at maturity.
In a statement on its official website on Monday, DMO said the offers opened on April 7 and closed on April 11.

The DMO said the settlement date is April 16, while coupon payment dates are made quarterly – July 16, October 16, January 16 and April 16.

“They are offered at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is made on the maturity date,” the DMO said.

It stressed that the savings bonds, like all other government securities, are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.

The agency further said the bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.

The Federal Government borrowed a total of N1.94 trillion from bond investors in the first quarter. This, however, does not include borrowings through the FGN savings bond programme.