Fed govt offers monthly Savings Bond at 14.54 per cent

The Federal Government will today (Monday) offer for subscription two-year and three-year Savings Bonds to investors at 13.54 per cent and 14.54 per cent, respectively.

A statement issued by the Debt Management Office in Abuja on Sunday said the two-year bond would be due in August 2019, while the three-year bond had a maturity date of August 2020, adding that the offer would end on Friday.

The offer has a minimum subscription of N5,000, with increases thereafter in multiples of N1,000 up to a maximum subscription of N50m.

According to the DMO, the bond is backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

Read Also:  Banks trading below minimum liquidity ratio – MPC members

The DMO said that the savings bond would help broaden the country’s funding base.

It added that the FGN Savings Bond was targeted primarily at retail investors to enable them to contribute to the development of the country, while also earning good return on investment in a sovereign instrument.

The FGN Savings Bond was introduced by the DMO in March 2017. It is issued every month through stockbroking firms trading on the Nigerian Stock Exchange.

Since its introduction, the FGN Savings Bond has attracted a lot of new investors to the FGN Securities market with its attractive features.

The income earned on the FGN Savings Bond is exempted from taxes. It can also be traded in the secondary market on the NSE.

Read Also:  Central bank again injects $304.4m into forex market

According to the DMO, the FGN Savings Bond is promoting the savings culture, while enhancing financial inclusion in the country.

Get more stories like this on Twitter and Telegram