The Debt Management Office (DMO) has launched the subscription offer for the May installment of the FGN Savings Bonds, priced at N1,000 per unit.
This offering features a two-year bond maturing on May 15, 2026, offering an interest rate of 17.407% per annum, and a three-year bond maturing on May 15, 2027, with an interest rate of 18.407% per annum. These rates represent the highest ever offered by the DMO for FGN Savings Bonds, suggesting a possible trajectory towards increased rates.
Subscription for these bonds commenced on May 6, 2024, and will remain open until May 10, 2024, as per the DMO’s announcement. Settlement is scheduled for May 15, 2024, with quarterly coupon payments set for August 15, November 15, February 15, and May 15.
Tailored for retail investors, FGN Savings Bonds provide the assurance of quarterly interest payments along with the repayment of the principal amount at maturity. Available at N1,000 per unit, with a minimum subscription of N5,000 and subsequent multiples of N1,000, up to a maximum subscription of N50 million, these bonds offer an accessible investment opportunity for individuals.
Backed by the full faith and credit of the federal government, FGN Savings Bonds are secured against Nigeria’s general assets, making them eligible for investment under the Trustees Investment Act, similar to other government securities.
