The Debt Management Office (DMO) of Nigeria has announced a subscription offer for the FGN Savings Bond for August 2023.
This Savings Bond is to provide Investors with an opportunity to earn competitive interest rates while supporting the country’s economic development.
The Federal Government of Nigeria Savings Bond programme is designed to attract domestic savings while simultaneously financing critical infrastructure projects and government initiatives.
By investing in these bonds, individuals and organisations can contribute to the country’s development efforts and earn favorable returns on their investments.
Interested investors are advised to contact their financial advisors or visit the Debt Management Office’s official website for further details and application procedures.
Meanwhile, the latest subscription offer includes two options: 2-Year FGN Savings Bond with a maturity date of August 1,6th, 2025, with an annual interest rate of 9.634% and 3-Year FGN Savings Bond due on August 16th, 2026, offering an annual interest rate of 10.634%.
The DMO said these rates offer a negative real return as they are well below the national inflation rate of 24.08% for July 2023.
It furthwr stated that the subscription period for the FGN Savings Bond opened on August 7th, 2023, and will close on August 7th, 2023 and that the total amount allotted for the 2-year bond is N421.76 million while that of the 3-year bond is N1.06 billion.
“Once subscribed, bondholders will receive coupon payments at regular intervals. The coupon payment dates are scheduled for November 16, February 16, May 16, and August 16,” it stated.
