DMO opens May savings bonds offer

The Federal Government on Monday opened its May savings bonds’ offer, the Debt Management Office (DMO) said.

According to the offer circular obtained from DMO’s website by our reporter, it offered the two-year bonds at 9.48 per cent and the three-year bonds at 10.48 per cent.

The two-year bonds would be due in May 2020, while the three-year bonds would mature in May 2021.

The Debt office, however, did not state how much was offered, but the maximum subscription was N50 million at N1, 000 per unit, subject to minimum subscription of N5, 000 in multiples of N1, 000.

According to the DMO, the bonds are backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

It was reported that savings bonds are issued to help finance the nation’s budget deficit.

They are targeted at encouraging low-income earners to save and earn more interests than the regular bank savings.

The offer closes on Friday.