FG raises N6.7bn from savings bond in eight months

The federal government has raised N6.7 billion through the auction of savings bonds in the last eight months, the Debt Management Office (DMO) has said.

An analysis of data from the DMO showed that the savings bond was highly subscribed in the first few months.

At its debut offer in March, the debt office raised N2.068 billion from the 13.01 percent two-year bond.

In April, N1.288 billion was raised through the 12.794 percent two-year bond and 13.794 percent three year bond.

Subsequently, it raised N791.15 billion with yields rising to 13.189 percent for the two-year bond and 14.189 percent for the three-year bond in May.

Figures from the DMO show a yield of N6.3 billion in September, signaling an increase of approximately N400 million between September and October.

However, statistics showed reduced subscription for the month of October, with N389.19 million raised through the 12.059 percent two-year bond and 13.059 percent three-year bond.

According to the DMO, the savings bond was introduced by the federal government to “stimulate and deepen the savings culture among households, assist with the diversification of funding sources for the government, and encourage financial inclusion across the social and economic strata”.

The minimum amount that can be invested in the savings bond is N5,000, giving unfettered access to the retail market, while the maximum investment is N50 million.