The Debt Management Office (DMO) has released details for the January 2019 FGN Savings Bond offer.
Here are the details:
How much can I buy?
₦1,000 per unit, subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, subject to a maximum subscription of ₦50,000,000.
What is the minimum amount I can buy?
Based on the above, the minimum amount you can buy is ₦5,000.
Interest rates
A 2-year FGN savings bond, due January 16, 2021, is 12.125% per annum.
A 3-year FGN savings bond, due January 16, 2022, is 13.125% per annum.
When are coupon payment dates?
April 16, July 16, October 16, January 16.
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 (January 11).
What do you get when you invest?
Invest ₦100,000 – ₦12,125 per annum for a 2-year savings bond, and ₦13,125 per annum for a 3-year savings bond.
Invest ₦500,000 – ₦60,625 per annum for a 2-year savings bond, and ₦65,625 per annum for a 3-year savings bond.
Invest ₦1 Million – ₦121,250 per annum for a 2-year savings bond, and ₦131,250 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.