Nigeria’s Debt Management Office (DMO) has announced that the September savings bonds’ offer of the Nigerian Government has opened for transactions.
The DMO said in a circular posted on its website on Monday that the two-year bonds would be offered at 11.15 percent, while the three-year bonds would be at 12.15 percent.
It explained that the two-year bonds would be due in September 2021, while the three-year bonds would mature in September 2022.
Although the DMO did not state how much that was offered, but it 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.
According to the DMO, the bond is fully backed by the full faith and credit of the Nigerian Government, with quarterly coupon payments to bondholders.
The savings bond issuance is expected to assist the government in financing the budget deficit of the government.
It is also designed by the Nigerian Government to encourage the lower income earners to save and earn more income since the interest is usually higher than the interest offered by commercial banks on savings accounts with the banks.
The DMO said that the offer would close on Friday.
GIK/APA