The Debt Management Office (DMO), has officially launched the subscription window for the Federal Government Savings Bonds (FGN Savings Bonds) for December 2024 with interest rate of 18.48 per cent.
The DMO, in an announcement on Monday, called on individual and institutional investors to partake in the opportunity which is billed to run over a four-day period, from December 2 to December 6, 2024.
This month’s bond offering includes two options: a two-year savings bond maturing on December 11, 2026, with an interest rate of 17.483 per cent, and a three-year bond maturing on December 11, 2027, offering 18.483 per cent.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
The settlement date for successful subscriptions is set for December 11, 2024, after which investors can expect their first quarterly coupon payment on March 11, 2025, followed by subsequent payments on June 11, September 11, and December 11 each year.
This offering gives Nigerians the opportunity to invest in government-backed bonds, contributing to personal and national financial stability.
The 18.48 per cent interest rate offered on the current savings bonds represents a notable increase compared to rates from the previous year.
In December 2023, the interest rate for a similar offering was 13.28 per cent, showing a sharp rise of 5.20 percentage points over the past year.
In November, the Federal Government of Nigeria raised N369.59 billion through its FGN bond auction which included two bond options with 5-year and 7-year maturities.
The 7-year bond emerged as the investors’ favourite, attracting a subscription of N294.02 billion, beyond the initial offer of N60 billion.
The oversubscription was an indication of strong investor confidence and interest in longer-term investments, with N282.62 billion allotted at a marginal rate of 22.00 per cent.
The 5-year bond also generated significant interest, with total subscriptions reaching N75.56 billion.
