The Debt Management Office (DMO) has released details for the October 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 October 10, 2020, is 11.175% per annum.
A 3-year FGN savings bond, due October 10, 2021, is 12.175% per annum.
When are coupon payment dates?
January 10, April 10, July 10, October 10.
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 (October 5).
What do you get when you invest?
Invest N100,000 – N11,175 per annum for a 2-year savings bond, and N12, 175 per annum for a 3-year savings bond.
Invest N500,000 – N55,875 per annum for a 2-year savings bond, and N60,875 per annum for a 3-year savings bond.
Invest N1 Million – N111,750 per annum for a 2-year savings bond, and N121,750 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.