Nigeria targets low income earners with September bond offer
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
Nigeria’s federal government, through its Debt Management Office (DMO), says its September public bond offer is targeted at low income earners seeking investment opportunities.
The government is offering for subscription two-year savings bond at 11.36 percent and three-year savings bond at 12.36 percent, aimed at encouraging savings which is poised to earn more income (interest), compared to the savings account interest rate with banks.
According to the offer circular obtained from the DMO, the two-year bond will be due in September 2020, while the three-year bond will be due in September 2021.
The offer which will close Friday, September 7 has the maximum subscription set at N50 million at N1,000 per unit, and a minimum subscription of N5,000 in multiples of N1,000.
The bond is 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.