The Federal Government has opened an offer for subscription of its October savings bonds, the Debt Management Office (DMO) disclosed on Monday.
A circular on DMO website shows that it offered a two-year FGN savings bond due on October 16, 2021, at the rate of 11.244% per annum; and a three-year FGN savings bond due on October 16, 2022, at the rate of 12.244% per annum.
DMO added that the units of sale was 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.
The website said the bond was fully backed by the full faith and credit of the federal government, with quarterly coupon payments to bondholders.
The savings bond issuance is expected to help finance the nation’s budget deficit.
It is also part of the federal government’s programme targeted at the lower-income earners, to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
The subscriptions, which opened on Monday, had a closing date of October 11, 2019, and a settlement date of October 16, 2019.