The debt management office, DMO, says the Federal government has commenced the 2019 bonds sales, offering for subscription two-year and three-year tenors’ savings bond at 12.12 per cent and 13.12 per cent, in that order
A circular from the DMO website noted that, the two-year bond will mature in January 2021, while the three-year instrument will be due in January 2022.
According to the circular, the maximum subscription is N50m at N1,000 per unit, and a minimum subscription of N5,000 and in multiples of N1,000.
The DMO disclosed that the bond is fully supported by the sovereignty of the Federal Government, with provision for quarterly coupon payments to bondholders.
Proceeds of the savings bond is expected to help finance the nation’s budget deficit in 2019
The issuance is in line with the Federal Government’s programme focused on lower income earners in the country to encourage savings.