The latest Federal Government of Nigeria Savings Bonds (FGNSB) have seen a hearty reception among investors, with total allotments for the April 2024 issuance reaching approximately N4.2 billion.
The Debt Management Office (DMO) reported a significant turnout with hundreds of investors participating, underscoring a strong 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.
During the offer period from April 1 to April 5, 2024, two bonds were made available: the FGNSB April 2026 and the FGNSB April 2027, with maturity periods of two years and three years respectively. The bonds attracted substantial interest rates of 17.046% and 18.046% respectively, leading to a spirited bidding process.
The settlements of these bonds occurred on April 9, 2024, with both offerings scheduled to mature in April of their respective years, 2026 and 2027.
Coupon payments for these bonds will be disbursed quarterly, enhancing their attractiveness as a steady income source for bondholders.