By Folasade Folarin
Abuja – The Federal Government on Monday offered for subscription a two-year savings bond at 10.48 per cent and a three-year savings bond at 11.48 per cent, the Debt Management Office (DMO) has said.
According to the offer circular on the DMO website, the two-year bond will be due in July 2020 while the three-year bond will be due in July 2021.
It, however, did not state how much was offered for the bonds, but stated 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 DMO said the bonds were fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
The savings bond issuance is expected to help finance the nation’s budget deficit.
It is to 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 said the offer would close on Friday.