The Debt Management Office (DMO) has made two tenors of FGN savings bonds available for the month of March 2023 and is inviting retail investors to subscribe.
The first tenor is a 2-year FGN savings bond with a coupon rate of 9.465% per annum due March 15, 2025.
The second tenor is a 3-year FGN savings bond with a coupon rate of 10.465% per annum due March 15, 2026.
The minimum subscription amount for these tax-free papers is N5,000, with a maximum subscription amount of N50 million.
The settlement date is March 15, 2023, with coupon payment dates of June 15, September 15, December 15, and March 15.
According to DMO, interested investors can buy these bonds from any licensed brokerage firm in the country.
The FGN savings bond is a safe debt instrument backed by the Nigerian government’s full faith and credit, and it can be used as a liquid asset in the calculation of banks’ liquidity ratios.
It’s also a qualified security under the Trustee Investment Act, which makes it an appealing option for trustees.
“This offering presents an opportunity for retail investors to invest in a low-risk, high-yield asset with a low entry barrier, which could potentially enhance their investment portfolio,” DMO said.