Federal Government has offered for subscription two-year savings bond at 11.27 percent and three-year savings bond at 12.27 percent per annum, the Debt Management Office (DMO) has said.
According to the offer circular posted on the DMO’s website on Monday, the two-year bond will be due in April 2021, while the three-year bond will be due in April 2022.
It however did not state how much was offered, but 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.
The website said the bond was fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
The savings bond issuance is expected to help finance the nation’s budget deficit.
It is also part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
The circular also said that the offer would close on Friday.
Meanwhile, the equities activities of the Nigerian Stock Exchange (NSE) reopened for the week on Monday on a downward trend as market capitalisation depreciated by 0.29 percent.
The News Agency of Nigeria reports that market capitalisation, which opened at N11.672 trillion, lost N34 billion or 0.29 percent to close at N11.638 trillion due to price losses by some blue chip equities.
The All-Share Index declined by 509.73 points or 01.64 percent to close at 30,531.69 against 31,041.42 posted on Friday.
An analysis of the price movement chart indicated that Nestle led the losers’ chart with a loss of N130 to close at N1, 450 per share. Betaglass came second with N7.15 to close at N64.8, while Nigeria Breweries lost N3.75 to close at N63 per share.
CCNN dipped N1.95 to close at N17.95 and Dangote Flour dropped N1 to close at N9.2 per share.
Conversely, Berger topped the gainers’ chart, gaining 0.8k to close at N9.05 per share. Caverton gained 0.22k to close at N2.71, while Ikeja Hotel rose by 0.18k to close at N2.06 per share. Zenith Bank increased by 0.1k to close at N21.9, while Unity Bank improved by 0.07k to close at 0.89k per share.
In all, a total of 1.72 billion shares worth N3.67 billion were traded by investors in 3,251 deals against the 266.86 million shares valued at N3.15 billion traded in 3,455 deals on Friday.
Wema Bank emerged as investors delight with 1.46 billion shares worth N1.05 billion. UBA followed, accounting for 62.95 million shares worth N485.03 million, while Chams sold 47.71 million shares valued N9.67 million.
Fidelity Bank traded 17.49 million shares worth N33.25 and ETI transacted 17.45 million shares valued N226.75 million.
