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Savings bond

Nigeria to sells unspecified amount of 2-,3-year savings bond in April ~DMO

By on April 5, 2021 0 88 Views

Nigeria plans to sell saving bonds with tenors ranging between 2-year to 3-year on April 6 to 9, 2021, according to a notice by the Debt Management Office (DMO) on Monday.

The debt office said it will sell the bonds at 5.522 percent per annum for the 2-year instrument and 6.522 percent for the 3-year paper.

“N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum
subscription of N50,000,000,” the DMO stated in the public notice.

Apart from the primary market auction sales, investors can also access the savings bonds after the auctions in the secondary market through any of the broker-dealers on the FMDQ OTC Trading Platform.

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Analysts said the interest yields on the bonds on offer could be a disincentive for investors as the country’s inflation rate peaked at 17.33 percent in February and expected to climb further in the coming months.

They say interest rate below the prevailing inflation rate and benchmark interest rate, which stood at 11.5 percent as of the last Monetary Policy Committee (MPC) meeting usually discourage savings as investors look for positive returns on their capital.

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