The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria has offered for subscription, the March 2021 Federal Government of Nigeria Savings Bond.
This is contained in a notification published on the website of the agency on Monday. According to the notification, the savings bond offer comes in two tranches;
- 2-year FGB Savings Bond due March 10, 2023: 5.181% per annum
- 3-year FGN Savings Bond due March 10, 2024: 6.181% per annum
- Opening Date: March 1, 2021
- Closing Date: March 5, 2021
- Settlement Date: March 10, 2021
- Coupon Payment Dates: June 10, September 10, December, and March 10
- 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 million.
According to the circular, the offer is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
Interested investors were however advised to visit their website in order to get the list of stockbroking firms appointed as distribution agents.
What you should know
- Nairametrics had reported the offer for subscription of a similar Savings Bond in February with interest rates of 4.214% and 5.214% per annum for 2 years and 3 years tenor respectively.
- The interest rate for the latest offer is, however higher than the offer announced in February. This could be a move to attract more investors to subscribe to the securities.
- The FGN Savings Bond is an investment product issued through the Debt Management Office (DMO) on behalf of the Federal Government.
- It also qualifies as securities in which trustees can invest under the Trustee Investment Act, and is listed on the Nigerian Stock Exchange.