DMO Offers June 2022 FGN Savings Bond For Subscription

What you should know

• • A month-on-month comparison shows that the rates for the two tranches increase slightly, compared to the  5.522% and 6.522% offered for the 2-year FGN savings bond due April 2023, and 3-year FGN Savings bond due April 2024, respectively.
  • However, Nairametrics reported that the  Debt Management Office (DMO) announced the suspension of the FGN Savings Bond Offer, which was slated for the month of April 2020.
  • Furthermore, the DMO noted that the suspension of the April 2020 Offer would not affect Coupon Payments due to investors for already issued FGN Securities, as arrangements had been made to ensure that all Coupon Payments for and redemptions of FGN Securities were made as and when due to investors’ designated accounts.
  • The interest rate for the latest offer is higher than the offer announced in the previous month. This could be a move to attract more investors to subscribe to the securities.
  • This is evidently seen in the equities market as investors sell off their shares in order to buy into less risky assets, amid high bond yields.
  • The FGN Savings Bond is an investment product issued through the Debt Management Office (DMO) on behalf of the Federal Government.