FGN Bonds, 2019 FGN Savings Bond, Debt Management Office

The Debt Management Office (DMO) has released details for the June 2019 FGN Savings Bond offer. Below 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 June 19, 2021, is rated at 11.418% per annum.

A 3-year FGN savings bond, due June 19, 2022, is 12.418% per annum.

When are coupon payment dates? September 19, October 19, March 19, June 19.

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 the June 2019 FGN Savings Bond offer.

Remember that the offer closes by Friday this week (June 14).

What do you get when you invest?

Invest ₦100,000 – ₦11,418 per annum for a 2-year savings bond, and ₦12,418 per annum for a 3-year savings bond.

Invest ₦500,000 – ₦57,090 per annum for a 2-year savings bond, and ₦62,090 per annum for a 3-year savings bond.

Invest ₦1 Million – ₦114,180 per annum for a 2-year savings bond, and ₦124,180 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.

3 COMMENTS

  1. Thank you so much this is the exact info and calculations I have been looking for in the wrong places. Keep it up

  2. Please help me authenticate this info and calculations ” A #50,000 invested on a three years bond tenure in May 2019 at 12.745 percent would deliver #6,372.5 every three months till May 2022, bringing the total possible coupon payment to #76,470 excluding the bullet repayment of the invested #50,000 on the maturity date “. Thanks.

    • Hi Musa, if you invest N50,000 in an FGN Savings bond with a tenor of 3 years and an interest of 12.745%, your total accrued interest will be N6,372.5. To know the amount you get on coupon payments, divide the interest by the number of times for coupon payments. That means you get N1,593.125‬ for every coupon payment until maturity. FGN bonds are essentially for capital preservation.

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