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FG Begins Savings Bonds Sales for May 2018

By Dipo Olowookere

The sale of the Federal Government of Nigeria savings bonds for the month of May 2018 has commenced.

The sales kicked off on Monday, May 7, 2018 and will end on Friday, May 11, 2018.

The exercise is being conducted by the Debt Management Office (DMO) on behalf of the government.

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The DMO is offering two-year bonds maturing in May 2020 and a three-year bond maturing in May 2021.

The nation’s debt office disclosed that while the two-year bond is offered at 9.48 per cent, the three-year bond would be sold at 10.48 per cent.

According to the DMO, the bonds are backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

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However, the debt office, which announced the sale of the savings bonds on its website, did not state how much would be offered to prospective investors.

But Business Post gathered that the maximum subscription would be N50 million at N1,000 per unit, subject to minimum subscription of N5,000 in multiples of N1,000.

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Savings bonds are targeted at encouraging low-income earners to save and earn more interests than the regular bank savings.

They are issued to assist government finance its budget deficit.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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