By Hamisu B. S
July 2019 FGN Savings bond auction
The Debt management office of Nigeria has released circular for the July 2019 FGN savings bond auction. DMO on behalf of Federal Government of Nigeria offer for subscription and is authorized to receive application for FGN savings bond.
The bond is offered with interest rate of 11.195% for 2 year FGN saving bond due July 2021 and 12.195% for 3 year FGN saving bond due July 2022. Interest is payable quarterly.
According to DMO, FGN savings bond is offered at 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.
Application opens July 1. 2019 and closes July 5. 2019.
FGN Saving bond is fixed income securities backed by the full faith and credit of the Federal Government of Nigeria.
Benefits:
The coupon/interest income is tax free and offers guaranteed return.
The FGN saving bond are traded in the secondary market of the Nigeria Stock Exchange.
FGN saving bond are acceptable as collateral for loan.
How to Invest:
Investors are to subscribe through stock brokers accredited by the DMO to act as distribution agents.
