The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria has offered for subscription, the April 2021 Federal Government of Nigeria Savings Bond.
This is contained in a notification seen by Nairametrics on the website of the DMO on Monday. According to the notification, the savings bond offer comes in two tranches:
- 2-Year FGN Savings Bond due April 14, 2023: 5.522% per annum
- 3-year FGN Savings Bond due April 14, 2024: 6.522% per annum
- Opening Date: April 6, 2021
- Closing Date: April 9, 2021
- Settlement Date: April 14, 2021
- Coupon Payment Dates: July 14, October 14, January 14, and April 14
- 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 March 2021 with interest rates of 5.181% and 6.181% per annum for 2 years and 3 years tenor respectively.
- The interest rate for the latest offer is higher than the offer announced in the previous month. This could be a move to attract more investors to subscribe to the securities.
- This is evidently seen in the equities market as investors sell-off their shares in order to buy into less risky assets, amid high bond yields.
- The FGN Savings Bond is an investment product issued through the Debt Management Office (DMO) on behalf of the Federal Government.