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Nigerian govt offers June Savings Bond at 11.344%

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Nigerian govt to float second N100bn Sukuk Bond in December

The Federal Government on Monday offered for subscription two-year and three-year Savings Bonds to investors for June 2018.

The Debt Management Office (DMO), which is offering the subscription on behalf of the Federal Government of Nigeria (FGN), said the offers started today, June 4, 2018, and is expected to close on Friday, June 8, 2018.

The DMO in a statement noted that the two-year savings bond will be due in June 13, 2020, while the three-year savings bond will mature in June 13, 2021.

The nation’s Debt Office pointed out that, while the two-year bond would be offered at an interest rate of 10.344 per cent annum, the three-year bond would be sold at 11.344 per cent annum.

It assured that the bonds are backed by the full faith and credit of the Federal Government with quarterly coupon payments to bondholders.

Read also: Prices of alcoholic drinks, tobacco to increase from Monday

Ripples Nigeria 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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