FG offers 2, 3-year saving bonds at 12.05%, 13.05% for February

The Federal Government has offered for subscription two-year saving bonds at 12.05 per cent and three-year savings bond at 13.05 per cent per annum, the Debt Management Office (DMO) has said.
According to the offer circular obtained from the DMO website on Monday, the two-year bond will mature in Feb. 2021, while the three-year bond will mature in February 2022.
It, however, did not state how much was offered, but added that the maximum subscription would be N50 million at N1,000 per unit, while the minimum subscription would be N5,000 in multiples of N1,000.
The Federal Government said that the bond was fully backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bond holders.
The savings bond issuance is expected to help finance the nation’s budget deficit.
It is also part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest) compared to their savings accounts with banks.
The circular said that the offer would close on Friday.