The Federal Government of Nigeria, through the Debt Management Office, has opened the sale of its Savings Bond to retail investors, offering a lesser yield than the previous four months’ auctions.
The offer, which was launched on Monday, July 1, concludes on July 5, with a settlement date of July 10, 2024.
The government sells a two-year savings bond at 16.67 percent per year, a lower rate than the 17.41 percent it paid in June 2024.
The three-year bond sells for 17.67 percent, which is lower than the 18.41 percent it sold for in June 2024.
These are the lowest returns available on FGN savings bonds since March 2024.
The interest will be paid quarterly, with coupon payment dates of October 10, January 10, April 10, and July 10.
The 2-year Savings Bond would be due on July 10, 2026, and the 3-year Savings Bond on July 10, 2027.
In March 2024, the government sold a two-year savings bond for 17.04 percent per year, which is 2.17 percent greater than the yields offered this month.
The March 2024 three-year bond was likewise sold at 18.04 percent, which was 2 per cent more than the July 2024 offer.
According to the Debt Management Office (DMO), the least amount that can be invested in a Savings Bond is N5,000, with a maximum investment of N50 million.
The Debt Management Office further advised interested investors to contact appointed stockbroking firms provided by the DMO.
