The Federal Government has listed its April 2024 savings bonds worth N4.214 billion on the Nigerian Exchange Limited (NGX) platform.
This was disclosed in the market bulletin signed by the Head of the Issuers Regulation Department of NGX, Godstime Iwenekhai, on Wednesday.
Details of the bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046%, while FGS April 2027, 2.986 million units are worth N2.986 billion at a coupon rate of 18.046%.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.
FGN savings bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the Debt Management Office (DMO) every month.
The retail savings bond product was introduced by the DMO on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge the infrastructure deficit which has been a constraint to economic growth.
Nairametrics reported that the recent issuance of the Federal Government of Nigeria Savings Bonds (FGNSB) has garnered a positive response from investors, with total allotments for the April 2024 issuance reaching approximately N4.2 billion.
The Debt Management Office (DMO) has reported a substantial turnout, with hundreds of investors participating, highlighting robust confidence in the stability and returns of government-backed securities.
The amount raised in April is about 45% higher than what was raised in the previous month. In March 2024, the DMO raised about N2.9 billion worth of savings bonds at a rate of 15.097% and 16.097% for the two-year and three-year bonds respectively.