18th FGN savings bond offer closes August 10
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
The eighteenth tranche of the Federal Government of Nigeria Savings Bond (FGNSB), which began Monday, will close Friday, August 10, 2018.
The August 2018 offer is a 2 and 3-year tenor bond with a yearly interest rate on the 2year FGNSB set at 10.668 percent while the interest rate on the 3year FGNSB is 11.668 percent.
According to the Debt Management Office (DMO), the offer, which is on behalf of the Federal Government of Nigeria (FGN), is part of the capital raising for the 2018 Budget.
Assuring the investment public that the bonds are backed by the full faith and credit of the Federal Government with quarterly coupon payments to bondholders, the DMO said the bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 with increases thereafter in multiples of N1,000 up to a maximum of N50 million.
The FGN Savings bonds are targeted at encouraging low-income earners to save and earn more interests than the regular bank savings.
The bonds are issued to assist the government to finance its budget deficit. It also helps in promoting savings culture and enhancing financial inclusion in the country as income earned from it is exempted from taxes.