- The Nigerian government, via the Debt Management Office (DMO) is offering high-interest-yielding savings bond
- A circular by DMO states that the savings bonds are in two tranches, the 2-year bond and 3-year bonds
- The DMO stated that the bonds would mature in 2023 and 2025, respectively and charged upon the assets of the Nigerian government
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The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced the offer for a subscription to the November 2022 Federal Government Savings Bonds.
According to a circular by the DMO, there are two batches of issuances, the 2-year and 3-year savings bonds, with interest rates of 12.492 per cent and 13.492 per cent.
Subscriptions set for as low as N1,000
Reports say the interest rates went up from 11.382 per cent and 12.382 per cent in October for the 2-year and 3-year Savings Bonds.
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The Savings Bonds yield has steadily increased since the Central Bank of Nigeria (CBN) adopted an aggressive monetary policy to fight inflation.
The CBN had increased the interest rate by 400 basis points to 15.5 per cent, which stood at a 17-year high in September 2022.
The rates hike spiked interest on savings, affecting FGN bonds currently in the market.
Between May and November 2022, the interest rate for the 2-year FGN savings bond has increased from 7.934 per cent to 12.492 per cent annually, while the 3-year bond has spiked from 8.934 per cent to 13.492 per cent in the same period.
The circular states that the subscription opening date was November 7, 2022, and closes by November 11, 2022.
Bonds to be settled after 2-3 years
The settlement date is November 16, 2022, and coupon payment dates are set for February 16, May 16, August 16 and November 16 next year.
N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 after, subject to a maximum subscription of N50,000.
The breakdown shows that the 2-year savings bond will mature on November 15, 2024, at 12.492 per cent annually, and the 3-year FGN bond will be due on November 16, 2025, at 13.492 per annum.
A breakdown of the bonds shows that the 2-year FGN savings bond will be due on November 16 2024, at 12.492% per annum, and the 3-year FGN Savings Bond will be due on November 16 2025, at 13.492% per annum.
The savings bond is guaranteed by the Nigerian government's full faith and credit and charged upon Nigeria's general assets.
Dangote Set to Borrow N112 billion from Nigerians to complete refinery project, full repayment date in 10yrs
Legit.ng reported that Dangote Industries Limited has resolved to borrow N112 billion from investors to complete its refinery project.
To complete the project, the company requires an additional $1.1 billion to be partly funded by the new bond this year.
The N112 billion balance is the N300 billion bond raised by DIL in July 2021.