By Nse Anthony-Uko
(Sundiata Finance) – The Debt Management Office (DMO), said subscribers will get an interest rate of 13.386 per cent on the two-year savings bond and 14.386 per cent on the three-year savings bonds which opened on Monday on Monday
The circular which was released on the office’s official website showed that the two-year bond will be due on July 12, 2019 while the three-year bond will be due on July 12, 2020.
The offer explained that the minimum subscription is N5,000 while the maximum subscription is N50 million at N1,000 per unit.
The bond is backed by the full faith and credit of the federal government of Nigeria and charged upon the general assets of Nigeria and interest would be paid quarterly while redemption would bullet repayment on the maturity date.
The savings bond issuance is expected to help finance the nation’s budget deficit which federal government predicted a deficit of 2.36 trillion naira in 2017, half of which it aims to fund through domestic borrowing.
The offer would last from July 3, 2017 to July 12, 2017 while the settlement date would come on the 12thof July, 2017. Coupon settlement for the bond would come up on October 12, January 12, April 12 and July 12 respectively.
Last month, the FG savings bonds which was opened for subscription on 5-9 June, 2017 was allotted N271.56 million at the rate of 13.189 per cent for a period of two years and it successfully recorded a subscription of 425 while N335.70 million was allotted for a period of three with a successful subscription of 496 at the rate of 14.189 per cent.