Business
FG offers July Savings Bonds for subscription at 10.483%, 11.483%
The Federal Government offered for subscription two savings bonds to Investors for July 2018, the Debt Management Office (DMO) has said.
The DMO, which is offering the subscription on behalf of the Federal Government of Nigeria (FGN), said the offers started on Monday, July 2, 2018, and is expected to close on Friday, July 6, 2018.
The DMO, in a circular released on Monday, noted that the two-year savings bond will be due in July 11, 2020, while the three-year savings bond will mature in July 11, 2021.
The nation’s Debt Office pointed out that, while the two-year savings bond would be offered with an interest rate of 10.483 percent per annum, the three-year savings bond would be sold with an interest rate of 11.483 percent per annum.
It assured that the bonds are backed by the full faith and credit of the Federal Government with quarterly coupon payments to bondholders.
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Although, it did not disclose the amount offered for the bonds, but it was gathered that the bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 with increases thereafter in multiples of N1,000 up to a maximum of N50 million.
The FGN Savings bonds are targeted at encouraging low-income earners to save and earn more interests than the regular bank savings.
The bonds are issued to assist the government finance its budget deficit, it also helps in promoting savings culture and enhancing financial inclusion in the country as income earned from it is exempted from taxes.
By Oluwasegun Olakoyenikan…
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