DMO offers FG bonds for subscription at N1000 per unit – How to Invest

FG Bonds 2021

The Debt Management Office (DMO) has offered for subscription the July 2021 Federal Government of Nigeria (FGN) Savings Bond (FG Bonds) at N1000 per unit.

This is according to information made available on the official website of the DMO and seen by naijabusinesss.com.ng

The breakdown of the offer shows that;

  • A two-year FGN Savings Bond due on July 14, 2023 was offered at a coupon or interest rate of about 8. 35% per annum.
  • On the other hand, a three-year FGN Savings Bond due on July 14, 2024 was offered at a coupon rate of 9.35% per annum

It is imperative to note that the interest payment is made quarterly with the redemption expected to be a bullet repayment on the maturity date. The bond which is to be offered at N1, 000 per unit is subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

In light of this, interested investors are urged to take note of these key dates;

  • Opening Date: July 5, 2021
  • Closing Date: July 9, 2021
  • Settlement Date: July 14, 2021
  • Coupon Payment Dates: October 14, January 14, April 14 and July 14.

READ: How to Invest in Nigeria’s N150 billion SUKUK Bonds, All You need to Know

What you should know about FGN Savings Bond.

The Debt Management Office (DMO) of Nigeria issues ‘’ FGN Savings Bond’’ on behalf of the Federal Government of Nigeria. The bonds help to enhance the savings culture amongst Nigerians, while providing all citizens with an opportunity to contribute to National Development, regardless of income.

These bonds are exempted from taxes and gets comparatively favourable returns available in the capital market. FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders.

They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks,

How do I invest? Investors are to subscribe through stockbroking firms accredited by the DMO to act as Distribution Agents. ​As at 16th of June 2021, there are 129 Distribution agents nationwide. To access these agents, click HERE.