The Federal Government has offered for subscription two and three-year Savings Bonds to investors at 13.535 per cent and 14.535 per cent, respectively.
The offering is scheduled to begin Monday, August 7 till Friday, August 11, 2017, the Debt Management Office (DMO) said in a statement on Sunday.
The two-year bond will be due in August 2019, while the three-year bond has a maturity date of August 2020.
The offer has minimum subscription of N5,000 with increases thereafter in multiples of N1,000 up to a maximum subscription of N50 million.
FGN Savings Bond is a retail savings product accessible to all income groups.
According to DMO, the bond is backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
The savings Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
It has been structured to serve as savings towards retirement, marriage, school fees, house projects, among others.
The DMO stated that the savings bond will help broaden the country’s funding base.
It is targeted primarily at retail investors to enable them contribute to the development of the country, while also earning good returns on a safe investment in a Sovereign instrument.
Launched by the DMO in March 2017, the bond is issued every month through stockbroking firms trading on the Nigerian Stock Exchange.
One of the major objectives is to promote the savings culture in the country and enhancing financial inclusion.
Since its introduction, the FGN Savings Bond has attracted a lot of new investors to the FGN Securities market with its attractive features.
The income earned on the FGN Savings Bond is exempted from taxes and it can be traded in the secondary market on the Nigerian Stock Exchange.
Onyinye Nwachukwu, Abuja
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