The Federal Government has offered for
subscription by auction N90 billion worth of bonds in its April 25 auction, the Debt Management Office, has said.
The offer circular obtained from its website on Tuesday in Abuja, stated that it would sell N30 billion of a five-year new issue maturing in April 2023 at an undisclosed rate.
It would also sell N30 billion seven-year re-opening bond to mature in March 2025 at 13.53 per cent and another N30 billion 10-year re-opening bond at 13.98 per cent to mature in Feb. 2028.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
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ReplyDeleteim going to need financial experts to break this down for me. i remember smartmoney arese talking about FG bonds and how its a good way to invest money. any help?
ReplyDeleteIt is a good investment. This one will be for like 5 years. Once you put your money, just forget about it until 5 or 4 years where it would have grown and enjoy the benefits
DeleteThe returns are not so high but your investment is secure and the risk is almost non existent. Unlike others with higher returns but with higher risk too.
Deletethanks.@yori yori. @Aivies shawarma, thanks. when you say "not so high' is it still higher than savings bank? and how does one go about it? can i just walk into any CBN branch to purchase?
DeleteOfcourse it is way higher than savings interest just like Treasury bills. Savings does not even give up to 1%.
DeleteYou don't need to go to any CBN branch,just ask your account officer or talk to a Broker and he/she will put you through.
Delete@platterfoods, i think it's best if you make thorough inquiry about gov't bonds and Treasury bills.
DeleteGovt bonds last for 5 years but Treasury bills have for as low as 91 days and sometimes the rates of T.Bills fluctuates between 13-17% Interest rate for d past a year now.
put the two investments and draw up your pros n cons before making your decision.
Good luck.