The offer for the Sixteenth series of the FGN savings bond kicked off on June 4, 2018 and will run till June 8, 2018, according to the Debt Management Office, DMO.
The Federal Government of Nigeria, through the DMO had on the March 13, 2017 issued the first series of the monthly 2year and 3year tenured savings bond. The Sixteenth(16th) series of the FGN savings bond is at the following rates:
The bond is also listed on the floor of the Nigerian Stock Exchange, NSE for the benefit of those who may want to trade theirs before maturity.
Savings bonds are debt instruments offered by government with the aim of mobilizing resources from the general public, InvestAdvocate.
The rationale behind the issuance of the savings bond by the FGN is to deepen the national savings culture, to diversify funding sources for the government and establish benchmark for other issuers.
Features;
* Minimum subscription Amount: N5,000.00 (additional investments in multiples of N1,000.00) and maximum of N50,000,000.00.
* The product will be issued monthly in tenors of 2 and 3 years, with quarterly interest payment.
* The bond will be listed on the Nigerian Stock Exchange to guarantee liquidity.
* The product will be offered to the investing public through offer for subscription at an interest rate to be determined by DMO.
Benefits;
* Guaranteed return and encourage financial inclusion among low income household.
* Income from investment are exempted from tax.
* Investment can be used as collateral for loan.
* Attractive coupon above average bank savings rate.
* Steady means of Income as coupon is paid quarterly.
