The Federal Government has opened application list for a new tranche of its Federal Government of Nigeria Savings Bond (FGNSB), providing retail investors opportunity to invest in sovereign securities.

The application for the new FGNSB opened on March 04, 2019 and will run till March 08, 2019. The government, through the Debt Management Office (DMO), is offering two tenors of two years and three years. The minimum subscription is N5,000 and thereafter in multiples of N1,000 up till a limit of N50 million.

The two-year tenured savings bond with a maturity date of March 13, 2021 carries interest rate or coupon of 11.62 per cent while the three-year savings bond, which has maturity date March 13, 2022, carries a coupon of 12.62 per cent. The interest income is tax exempt.

The interest will be paid quarterly in arrears while the principal will be paid at maturity together with the last interest payment.

In a circular, the DMO indicated that the FGNSB will be listed on the Nigerian Stock Exchange (NSE).

Bondholders will have their holdings credited into their investment accounts at the Central Securities Clearing System (CSCS) within three working days after the closure of application on Friday.

The coupon or interest for the FGNSB will be paid quarterly on June 13, September 13, December 13 and March 13 through the tenor of the issue.

GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds would help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.