As the FGN Savings bond opened yesterday, brokers say the response to the bond has been huge as individuals made enquiries with interest to participate in the bond. The Debt Management Office (DMO) is issuing the bond to provide retail investors to partake in infrastructural development of the country as well as make money on their investments.
According to the offer circular issued by the debt office, the minimum subscription amount for the bond is N5,000 with additional investments in multiples of N1,000 and maximum of N50 million with an interest of 13.01 per cent payable quarterly.
Brokers who spoke with LEADERSHIP said their phones lines had been busy indicating high interest in the savings bond which is the first of its kind in the country. The bond sales which opened yesterday, Monday March 13, 2017 will be opened for five days till Friday March 17, 2017.
The bond will be issued monthly in tenors of 2 and 3 years, with quarterly payment of interest to investors. The bond is expected to be listed on the Nigerian Stock Exchange to guarantee liquidity.
Asides this, the DMO will also be holding its monthly bond sales. The debt office hopes to raise N130 billion through the sales of the FGN bonds. It plans to auction N45 billion in the 2021 paper, N50 billion in the 2027 paper and N35 billion in the 2036 paper.
Also this week, there will be a maturing of Treasury Bills as the CBN is planning to mop up more than it will settle this week. Total maturing bills of 91, 182 and 364 day bills stand at N180.508 billion while it will be auctioning N213.763 billion in the three bills.