By Dipo Olowookere
The April 2024 Savings Bonds worth N4.214 billion sold to retail investors last month have been listed on the trading platform of the Nigerian Exchange (NGX) Limited.
The debt securities were brought to the stock exchange for listing by the federal government through the Debt Management Office (DMO), which issued the papers.
The retail savings bond product was introduced by the DMO on behalf of the Nigerian government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.
The FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.
At the April 2024 exercise, the debt office sold 1.228 million units valued at N1.228 billion of the two-year note maturing in April 2026 at a coupon rate of 17.046 per cent. The three-year note was sold at 18.046 per cent, with 2.986 million units at N2.986 billion.
Announcing the listing of the bonds today, the Head of Issuers Regulation Department of NGX, Mr Godstime Iwenekhai, said, “Trading license holders are hereby notified that the April 2024 issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”
Adedapo Adesanya