FG raises N4.2 billion from Nigerian savings bonds in April 2024

Date:

May 13, 2024.

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Azonuchechi Chukwu.

The latest Federal Government of Nigeria Savings Bonds (FGNSB) have seen a hearty reception among investors, with total allotments for the April 2024 issuance reaching approximately N4.2 billion.

The Debt Management Office (DMO) reported a significant turnout with hundreds of investors participating, underscoring a strong confidence in the stability and returns of government-backed securities.

The amount raised in April is about 45% higher than what was raised in the previous month. In March 2024, the DMO raised about N2.9 billion worth of savings bonds at a rate of 15.097% and 16.097% for the two-year and three-year bonds respectively.

During the offer period from April 1 to April 5, 2024, two bonds were made available: the FGNSB April 2026 and the FGNSB April 2027, with maturity periods of two years and three years respectively. The bonds attracted substantial interest rates of 17.046% and 18.046% respectively, leading to a spirited bidding process.

 

The FGNSB April 2026, with a shorter tenure, saw a total allotment of N1.23 billion, while its longer counterpart, the FGNSB April 2027, witnessed a more considerable allotment of N2.99 billion.

The total number of successful subscriptions stood at 558 for the 2026 bond and 952 for the 2027 bond, highlighting a more pronounced investor preference for the latter.

The settlements of these bonds occurred on April 9, 2024, with both offerings scheduled to mature in April of their respective years, 2026 and 2027.

Coupon payments for these bonds will be disbursed quarterly, enhancing their attractiveness as a steady income source for bondholders.

This successful bond issuance is a clear indicator of the healthy investor appetite for Nigerian sovereign debt, reflecting trust in the nation’s fiscal management and economic policies.

Moreover, the high participation rates and significant allotments serve as a robust indicator of the market’s liquidity and investor confidence in the stability of Nigeria’s financial instruments.

For individual and institutional investors, this development signifies a valuable opportunity to lock in attractive interest rates with government-backed security.

Investing in FGNSB not only offers favourable returns but also provides a safe investment avenue, contributing to funding national development projects. (www.naija247news.com).


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Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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