The Federal Government of Nigeria, via the Debt Management Office, has commenced the sale of its Savings Bond to retail investors, offering lower returns than the auctions of the past four months.
The sale began on Monday, July 1, and will conclude on July 5, with the settlement date set for July 10, 2024.
A two-year savings bond is being offered at an annual rate of 16.67 percent, which is less than the 17.41 percent rate from June 2024.
Similarly, the rate for the three-year bond is set at 17.67 percent, a decrease from June’s rate of 18.41 percent.
These rates represent the lowest returns on FGN savings bonds since March 2024.
Interest payments are made quarterly, with the coupon payment dates set for October 10, January 10, April 10, and July 10. The 2-year Savings Bond matures on July 10, 2026, and the 3-year Savings Bond matures on July 10, 2027.
In March 2024, the government issued a two-year savings bond with an annual interest rate of 17.04 percent, which was 2.17 percent higher than the rates offered this month.
Similarly, the three-year bond issued in March 2024 had an interest rate of 18.04 percent, surpassing July 2024’s offer by 2 percent.
The Debt Management Office (DMO) states that the minimum investment for the Savings Bond is N5,000, and the maximum is N50 million. The DMO also advises interested investors to reach out to the designated stock-broking firms they have listed.
