The federal government has commenced its borrowing
activities for year 2019 with savings bonds sales by offering for
subscription two-year savings bond at 12.12 per cent and three-year
savings bond at 13.12 per cent, the Debt Management Office (DMO) has said.
According to the offer circular obtained from the DMO website on Monday,
the two-year bond will be due in Jan. 2021, while the three-year bond will
be due in Jan. 2022.
The government has raised N10.5 billion from the savings bond as at
November 2018, Patience Oniha, director general of the DMO said.
The federal government did not specify the amount it seeks to raise
through this offering.
However, the maximum subscription for the savings bond is N50 million at
N1, 000 per unit, subject to minimum subscription of N5, 000 and in
multiples of N1,000.
The FGN Savings bonds are 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 interest,
compared to their savings accounts with banks.
The circular also said that the offer would close on Friday January 11, 2019.
