The Federal Government, through the Debt Management Office (DMO), has offered subscription to the Federal Government of Nigeria Savings Bonds (FGN Bonds) worth N50 billion in November 2020.
This was disclosed in an offer for subscription circular made available on the DMO’s website
The FGN bonds are listed in two tranches that include:
- 2-Year FGN Savings Bond due November 11, 2022: 1.759% per annum.
- 3-Year FGN Savings Bond due November 11, 2023: 2.759% per annum.
The FG bond is usually backed by the full faith and credit of the Federal Government of Nigeria, and charged upon the general assets of Nigeria.
The key highlights of the offer
- Opening Date: November 2, 2020.
- Closing Date: November 6, 2020.
- Settlement Date: November 11, 2020.
- Coupon Payment Date: February 11, May 11, August 11, November 11.
- Units of Sale: 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 N50,0000,000.
- Interest payment: Payable quarterly.
- Redemption: Bullet repayment on the maturity date.
What you should know
The Debt Management Office (DMO) of Nigeria, on behalf of the Federal Government of Nigeria, is responsible for the issuance of the “FGN Savings Bond” . The bonds help to enhance the savings culture amongst Nigerians, while providing all citizens with an opportunity to contribute to National Development, irrespective of income level.
These bonds also get comparatively favorable returns available in the capital market. FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders.
How to Invest
Investors are to subscribe through stockbroking firms accredited by the DMO to act as Distribution Agents.