The Federal Government of Nigeria, through the Debt Management Office (DMO), is inviting applications for its savings bond whose offer opened on May 1, and will last till May 5, 2023.

The latest offer comes amidst the strong interest received for previous bond offers by the DMO from the local and international investors, especially the 20-year and 30-year bond offers in April 2023 which were oversubscribed.

The new offer comprises a two-year savings bond due May 10, 2025, and another three-year savings bond due May 10, 2026.

The two-year bond has an interest rate of 10.391 per annum while the 3-year bond has an interest rate of 11.391 percent per annum.

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According to the offer document, settlement date is May 10, 2023 while the coupon dates are August 10, November 10, February 10 and May 10.

In terms of units of sale, DMO further stated that it will be “N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000”, adding that interest payment will be done on a quarterly basis while bullet repayment will be on the maturity date.

The rising fiscal deficit in the nation has made the FG to continuously opt for bonds to augment its finances.