The Debt Management Office (DMO) has released details for the August 2018 FGN Savings Bond offer.
How much can I buy?
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 N50,000,000.
What is the minimum amount I can buy?
Based on the above, the minimum amount you can buy is N5,000.
A 2-year FGN savings bond due August 15, 2020, is 10.668% per annum.
A 3-year FGN savings bond due August 15, 2021, is 11.668% per annum.
When are coupon payment dates?
November 15, February 15, May 15 and August 15.
When will the principal be paid?
Bullet repayment on the maturity date.
What about security for my money?
The loan is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
Where can I buy it from?
Contact your stockbroker if you want to buy it. And remember that the offer closes by Friday this week (August 10).
What do you get when you invest?
Invest N100,000 – N10,668 per annum for a 2-year savings bond, and N11,668 per annum for a 3-year savings bond.
Invest N500,000 – N53,340 per annum for a 2-year savings bond, and N58,340 per annum for a 3-year savings bond.
Invest N1 Million – N106,680 per annum for a 2-year savings bond, and N116,680 per annum for a 3-year savings bond.
Remember that interest is paid quarterly. To get how much you will earn quarterly, divide what you get above by 4.