Dipo Olowookere
By Dipo Olowookere
The Debt Management Office (DMO) will Friday noon close subscription for the April 2019 edition of the Federal Government of Nigeria (FGN) savings bind.
Business Post reports that the exercise opened on Monday with two maturities offered for sale to intending investors.
The DMO is issuing the two-year coupon at 11.276 percent per annum and the three-year paper at 12.276 percent per annum.
The settlement date is fixed for Wednesday, April 10, 2019. It is important to stated that this is the date the bonds will be credited into subscribers’ CSCS Account domiciled with their brokers.
The interest would be paid to subscribers quarterly, with the bond’s rate divided by 4.
According to the debt office, investors would be required to buy N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
Investors are to subscribe through stockbroking firms trading on the floor of the Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents.
After the offering, the savings bond will be listed on the stock exchange for trading and provides liquidity for investors who want to exit before maturity.
The savings bond was introduced by the Nigerian government in 2017 to deepen the national savings culture and as well provide opportunity to all citizens irrespective of income level to contribute to national development.
It was also designed to enable all citizens participate in and benefit from the favourable returns available in the capital market and diversify funding sources for government.
