DMO Unveils November FGN Savings Bonds with Attractive 13.4% Interest Rate

The Debt Management Office (DMO) has officially initiated the subscription process for the Federal Government of Nigeria’s two-year and three-year bonds for the month of October, offering an attractive interest rate of up to 13.4%. This significant financial development was disclosed through an official statement published on the DMO’s website.

The subscription period is set to extend over a five-day window, commencing on November 6th and concluding on November 10th, 2023. Investors who participate in this offering can expect the bonds to mature on November 15th, 2025, and November 15th, 2026, for the two-year and three-year bonds, respectively.

The statement issued by the DMO emphasizes the legal foundation for this offering, stating, “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004, DEBT MANAGEMENT OFFICE, on behalf of the FEDERAL GOVERNMENT OF NIGERIA, offers for subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds.”

Interest Rates and Tenure:
Investors considering these bonds will find the interest rates quite appealing. The two-year bonds offer a competitive interest rate of 12.464% per annum, while the three-year bonds provide an even more attractive rate of 13.464% per annum. Additionally, the statement specifies the settlement date for both bond offerings as November 15th, 2023, with coupon payments scheduled for February 15, May 15, August 15, and November 15 of each year. This means that bondholders can anticipate interest payments on a quarterly basis, making these bonds an enticing investment opportunity.

Units of Subscription:
The DMO has meticulously outlined the units of subscription for potential investors. Each unit of subscription is priced at N1,000, subject to a minimum subscription requirement of N5,000. Investors can subsequently subscribe in multiples of N1,000, with a maximum subscription limit set at N50,000,000. This flexibility in subscription units caters to a wide range of investors, from individual retail investors to institutional players. Those interested in participating in this bond offering are strongly encouraged to get in touch with stock brokerage firms that are officially listed as authorized agents by the Debt Management Office (DMO). Furthermore, it’s worth noting that these bonds are actively traded on the NGX (Nigerian Exchange Group), offering liquidity and ease of trading.

Federal Government Guarantee:
One essential aspect that investors should be aware of is that Federal Government of Nigeria (FGN) bonds come with the full backing and guarantee of the federal government. This provides a high level of security and assurance to investors, making these bonds a relatively low-risk investment option. The federal government’s commitment to honoring its debt obligations ensures that bondholders can have confidence in the reliability of their investments.

In conclusion, the Debt Management Office (DMO) has initiated the subscription process for the Federal Government of Nigeria’s two-year and three-year bonds with attractive interest rates and a well-structured offering. This opportunity, which runs from November 6th to November 10th, 2023, provides a chance for investors to participate in a secure and rewarding investment, backed by the Nigerian government’s strong guarantee. With quarterly interest payments and a flexible subscription structure, these bonds are a compelling choice for a wide range of investors. Interested parties are encouraged to reach out to authorized agents and take advantage of this promising investment opportunity.