FG offers savings bonds at 10.7%, 11.7 % in March
Ajose Sehindemi is Businessamlive Reporter.
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The Federal Government on Monday offered for a subscription a two-year savings bond at 10.74 percent and three-year savings bond at 11.74 percent.
According to a posting by the Debt Management Office (DMO), the two year savings bonds will be due in March 2020.
DMO said the three-year savings bond would be due in March 2021.
The Debt office, however, did not state the total amount on offer, but the maximum subscription was N50 million at N1,000 per unit, subject to minimum subscription of N5,000 in multiples of N1,000.
DMO stated that the bond is backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
The offer closes on Friday and the savings bond issuance is expected to help finance the nation’s budget deficit.
Banks, according to some manufacturers, need to be stopped from investing in bonds to boost their capital base as they said the banks prefer to invest in the bonds instead of the manufacturing sector, which was why industrialist are charged higher interest rate for loans taken to finance their investments.