Nigerian government has opened applications for a two-year savings bond at 5.52 per cent and a three-year savings bond at 6.52 per cent interest rates yearly.
The country’s Debt Management Office, in a circular posted on its website, stated that the bond offer entitled ‘Federal Government of Nigeria Savings Bond’ opened on April 6 and would close on April 9.
According to the agency, the settlement date would be April 14, 2021, while the coupon payment dates would be July 14, October 14, January 14, and April 14.
It further said the two-year bond would be due on April 14, 2023 while the three-year bond on April 14, 2023.
DMO said the units of sale would be “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 N50m.”
The savings bond issuance is expected to help finance the nation’s budget deficit.
It is also part of the government’s programme targeted at the low income earners to encourage savings and also earn more interest, compared to their savings accounts with banks.
“Interested investors should contact the stockbroking firms appointed as distribution agents by the DMO,” it added.
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