The Debt Management Office (DMO) is issuing its monthly FGN Savings Bonds between Monday, December 02, 2019 and Friday, December 06, 2019.
The bonds being issued are:
2 Year FGN Savings Bond
December 11, 2021: Coupon 9.091% per annum
3 Year FGN Savings Bond
December 11, 2022 Coupon 10.091% per annum
Monday, December 2, 2019
Friday, December 6, 2019
Wednesday, November 11, 2019 (this is the date the bonds will be credited into your CSCS Account domiciled with your broker).
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 N50,000,000.
Quarterly (Coupon rate divided by 4)
Bullet payment on the maturity date
- To deepen the national savings culture.
- To provide an opportunity to all citizens irrespective of income level to contribute to National Development.
- To enable all citizens to participate in and benefit from the favourable returns available in the capital market.
- To diversify funding sources for the Government.
- Minimum subscription amount of N5,000 with additions in multiples of N1,000.
- Fixed interest rate to be paid on a quarterly basis while the principal will be repaid on maturity.
- The rate will be announced on a monthly basis before the commencement of the offer.
- The bond is backed by the full faith and credit of the Federal Government of Nigeria.
- The bond will be tradable on the Nigerian Stock Exchange.
- The settlement period is T+2
Benefits of investing in FGN Savings Bond:
- Interest income from the savings bond is tax-free.
- Returns are competitive and guaranteed
- Investors will enjoy interest payments on a quarterly basis while principal will be repaid
- Provides liquidity as it will be tradable on the Nigerian Stock Exchange.
- The bond can be used as collateral for a loan.
- Investing in the bond serves as savings towards retirement, marriage, school fees, house projects, etc.
How to Invest