FG Lists N1.8bn February Savings Bonds
The Federal Government at the weekend listed two new tranches of its Federal Government of Nigeria Savings Bond (FGNSB) on the Nigerian Stock Exchange (NSE), paving the way for investors to trade on the debts. The two bonds – a two-year bond and a three-year bond, were issued on February 10, 2021.
In the first listing, a total of 673,120 units of a two-year savings bond valued at N673.12 million were listed at par value of N1,000 per unit. The two-year bond carries a coupon of 4.214 per cent with maturity at February 10, 2023.
The government also listed a total of 1.125 million units of a three-year savings bond valued at N1.125 billion at a par value of N1,000. The three-year bond carries a coupon of 5.214 per cent with maturity on February 10, 2024. The government had raised N18.14 million and N78.05 million through two and three year bonds in January 2021.
The two bonds were issued earlier this month as part of the government’s monthly FGNSB issuance calendar. The coupon payment dates for the bonds, which pay interest rate quarterly, are May 10, August 10, November 10 and February 10.
The latest coupons showed continued increase in yields on government securities. The two-year and three-year savings bonds issued in January 2021 had carried coupons of 2.19 per cent and 3.19 per cent respectively. A similar two-year FGNSB issued in November 2020 and due on November 11, 2022 had offered a coupon of 1.759 per cent per annum. The three-year FGNSB issued in November 2020 and due November 11, 2023 had carried a coupon of 2.759 per cent.
Traditionally, minimum subscription to the FGNSB, usually offer at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilisation of savings and investments. Minimum subscription to the FGNSB is usually N5,000 while the bond pays coupon or interest rate on a quarterly basis.
Meanwhile, additional units of other FGN bonds issued in January 2021 were listed on the NSE earlier last week. A total of 70.90 million units were added to the 16.2884 per cent FBN March 2027 bond, increasing the total outstanding units for the issue to 679.29 million units.
Also, a total of 83.43 million units were added to the 12.50 per cent FGN March 2035 bond to increase the total outstanding units for the bond to 528.009 million units while 16.028 million units were added to the 9.80 per cent FGN July 2045 bond, increasing the total outstanding units for the issue to 191.43 million units.