The Debt Management Office (DMO) has released details for the September 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.
Interest rates
A 2-year FGN savings bond, due September 12, 2020, is 11.364% per annum.
A 3-year FGN savings bond, due September 12, 2021, is 12.364% per annum.
When are coupon payment dates?
December 12, March 12, June 12, September 12.
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.
From where can I buy it?
Contact your stockbroker if you want to buy it. And remember that the offer closes by Friday this week (September 7).
What do you get when you invest?
Invest N100,000 – N11,364 per annum for a 2-year savings bond, and N12,364 per annum for a 3-year savings bond.
Invest N500,000 – N56,820 per annum for a 2-year savings bond, and N61,820 per annum for a 3-year savings bond.
Invest N1 Million – N113,640 per annum for a 2-year savings bond, and N123,640 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.
