By Mbakaan Kwen, Abuja
The federal government savings bonds which debuted in March, 2017 has opened its last leg of subscription for this year which will close December 8, 2017. This subscription comes up once every month and it has traded in the past eight months with a total of N6.694 billion been raised so far. The bond is meant to encourage increased participation of low and middle income earners in the bond market.
According to the offer of subscription time table, the two years saving plan would be offered at 11.738 per cent which is meant to be due in December 13, 2019 while the three year subscription would be at the rate of 12.738 per cent per annum with maturity in December 13, 2020.
Accordingly, the offer will sale 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 while interest will be payable quarterly to subscribers of the offer. The instrument is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria which qualifies as securities in which trustees can invest under the Trustee Investment Act and also qualifies as a liquid asset for liquidity ratio calculation for banks.