The Debt Management Office (DMO) has unveiled plans to raise N200 billion through the issuance of savings bonds, with the auction scheduled for Monday and settlement set for Wednesday.
According to details released on its website, the offer includes a reopening of the June 2032 bond with a coupon rate of 17.95 percent, alongside a new five-year FGN AUG 2030 bond worth N100 billion, for which the coupon rate is yet to be determined.
The minimum subscription is pegged at N5,000, with subsequent additions in multiples of N1,000, up to a maximum of N50 million. Interest payments will be made semi-annually.
Earlier in August, the DMO issued Federal Government savings bonds offering up to 15.401 percent per annum.
That tranche comprised a two-year bond maturing on August 13, 2027, at 14.401 percent, and a three-year bond maturing on August 13, 2028, at 15.401 percent.
Demand for longer-tenor instruments remains strong.
Results from the July auction showed 109 bids for the FGN June 2032 bond, with 59 successful.
The DMO allotted N172.50 billion to the June 2032 bond and N13.43 billion to the April 2029 bond.
It explained that “successful bids for the 19.30% FGN APR 2029 (five-year reopening) and the 17.95% FGN JUN 2032 (seven-year reopening) were allotted at marginal rates of 15.69 percent and 15.90 percent, respectively, though the original coupon rates of 19.30 percent and 17.95 percent remain unchanged.”
United Capital has emphasized the advantages of investing in FGN bonds, citing guaranteed returns if held to maturity, a low entry threshold of N5,000 to promote financial inclusion, competitive interest rates compared to savings accounts, and tax-free interest income.
It further noted that FGNSB certificates can serve as collateral for loans and, being backed by the Federal Government, are regarded as risk-free.
