By Financescape
The Debt management office of Nigeria has released circular for the August 2019 FGN savings bond auction.
Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004. DMO on behalf of the Federal Government of Nigeria offers for subscription and is authorized to receive an application for the FGN savings bond.
At the following interest rates:
2-Year FGN Savings Bond due August 14, 2021: 10.301%per annum
3-Year FGN Savings Bond due August 14, 2022: 11.301%perannum
Opening Date: August 5, 2019
Closing Date: August 9, 2019
Settlement Date: August 14
Coupon Payment Dates: November 14, February 14, May 14, August 14
According to DMO, the 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.
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 returns.
The FGN saving bond is traded in the secondary market of the Nigeria Stock Exchange.
FGN saving bond is acceptable as collateral for a loan.
How to Invest:
Investors are to subscribe through stockbrokers accredited by the DMO to act as distribution agents.
