FG sells Savings Bonds at 13.5% in August

The Federal Government on Monday offered for a subscription two-year Savings Bond at 13.535 per cent and a three-year Savings Bond at 14.535 per cent.
The Debt Management Office (DMO) stated on its website that both bonds would be due in August 2019.
It did not, however, state how much was offered, but the maximum subscription was N50 million at N1,000 per unit, subject to minimum subscription of N5,000 and in multiples of N1,000.
DMO further explained that the bond is 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.
Savings Bonds is part of the Federal Government’s programme targeted at the low-income earners to encourage savings and earn more interest on savings, compared to what was accrued on their bank savings. The offer is expected to closes on Friday.