DMO opens September savings bond offer for transactions

The Debt Management Office (DMO), says that the September savings bonds’ offer of the Federal Government has opened for transactions.

The DMO said in a circular on its website obtained by the News Agency of Nigeria (NAN) on Monday that the two-year bonds were being offered at 11.15 per cent, while the three-year bonds would be at 12.15 per cent.

It added that the two-year bonds would be due in Sept. 2021, while the three-year bonds would mature in Sept. 2022.

It, however, did not state how much was offered, but added 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 website said that the bond was 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 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 that the offer would close on Friday.

The DMO advised interested investors to contact stockbroking firms appointed by it as distribution agents or visit www.dmo.gov.ng for a list of the agents.

-NAN