The Debt Management Office (DMO) has released details for the May 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 in May 15, 2021, is rated at 11.745% per annum.

A 3-year FGN savings bond, due May 15, 2022, is 12.745% per annum.

When are coupon payment dates? August 15, November 15, February 15, May 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.

Coronation Research

From where can I buy it? Contact your stockbroker if you want to buy the May 2019 FGN Savings Bond offer.

Remember that the offer closes by Friday this week (May 10).

What do you get when you invest?

Invest ₦100,000 – ₦11,745 per annum for a 2-year savings bond, and ₦12,745 per annum for a 3-year savings bond.

Invest ₦500,000 – ₦58,725 per annum for a 2-year savings bond, and ₦63,725 per annum for a 3-year savings bond.

Invest ₦1 Million – ₦117,450 per annum for a 2-year savings bond, and ₦127,450 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.

8 COMMENTS

  1. hello, good evening..
    please, if I buy a bond of say #100,000 and before a particular coupon payment, I buy additional units of another #100,000..
    what will my next coupon payment be?

    • Hi Peter, if I understand you correctly you want to know if subscription can be topped, I don’t think that’s possible. Every subscription is a new one and as such for each subscription you have to wait for their individual coupon payment date.

    • HI Olayiwole, FGN Savings Bond is usually a minimum of 2 years tenor, and your return will be based on the rate DMO is offering. So, assuming you buy the May 2019 issue of the FGN Savings Bond for 2-years tenor at 11.745% your return will be N420,000 + N49,329 = N469,329; for 3-years tenor at 12.745% your return will be N420,000 + N53,529 = N473,529. Also, don’t forget that the interest is paid on the coupon dates. That means your interest divided by the number of coupon dates.

    • Hi Tamu, for 2-year FGN Savings Bond you will get N1,174.5 (11.745%) as interest for your N10,000. For 3-year FGN Savings Bond you will get N1,274.5 (12.745%) as interest for your N10,000.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.