FG lists N4.21bn April savings bonds on NGX

The Federal Government of Nigeria has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Ltd. (NGX) platform.

The listing was announced by the Head, Issuers Regulation Department of NGX, Mr Godstime Iwenekhai, in a market bulletin.

Iwenekhai listed the details of the bonds to include FGS April 2026 of 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 per cent.

He said FGS April 2027, which is 2.986 million units, amounted to N2.986 billion at a coupon rate of 18.046 per cent was also listed.

According to him, the bonds are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria, according to the debt office.

“Trading license holders are hereby notified that the April 2024 issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on NGX on May 13.

“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 DMO every month,” he said.

Iwenekhai explained that the retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the federal government in 2017.

He noted that this is to democratise its activities in the bond market by making it easily accessible to Nigerians, to ensure continuous development of the domestic market.

According to him, the product was also aimed at bridging infrastructure deficit which has been a constraint to economic growth.