Business
FG floats savings bond for low income earners
The Federal Government has commenced the sale of the 2019 savings bonds by offering for subscription two-year savings bond at 12.12 per cent and three-year savings bond at 13.12 per cent.
This was disclosed by the Debt Management Office (DMO) in an offer circular published on its website on Monday.
According to the circular, the two-year bond will be due in January 2021, while the three-year bond will be due in January 2022, adding that the maximum subscription was N50million at N1,000 per unit, subject to minimum subscription of N5,000 and in multiples of N1,000.
According to the circular, the bond was fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
Read also: FG issues another N100bn Sukkuk bond
Aside using the savings bond issuance to help finance the nation’s budget deficit, the circular disclosed that it was part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more interest, compared to their savings accounts with banks.
The offer closes on Friday.
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