Nigeria offers 2, 3-year savings bonds at 11.74%, 12.74% for May

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Abuja – The Federal Government has offered for subscription of two-year savings bond at 11.74 per cent and three-year savings bond at 12.74 per cent per annum, the Debt Management Office (DMO) has said. Eurobonds Eurobonds

According to the offer circular obtained from the DMO website on Monday, the two-year bond will be due in May 2021, while the three-year bond will be due in May 2022.

It, however, did not state how much was offered, but added that the maximum subscription was N50 million at N1, 000 per unit, subject to minimum subscription of N5, 000 and in multiples of N1, 000. The website said that the bond was fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

The savings bond issuance was expected to help finance the nation’s budget deficit. It is also part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.

The circular also disclosed that the offer would close on Friday. (NAN)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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