Investors’ Interest in Savings Bond Wane as DMO Raises N1.3bn

Investors’ interest in the Federal Government Savings Bond, which kicked off last month waned in April as the amount raised through the bond offer for this month was less than what was raised at the debut in March.

The Debt Management Office (DMO) said it raised N1.288 billion from the 2-year and 3-year papers 37.7 per cent lower than what it raised in March.

The office said it had opened the bond offer for five days last week from Monday, April 3 to Friday, April 7, same as it did last month.

However, the number of successful bids dropped by 30.5 per cent from 2,575 subscribers in March to 1,798 subscribers in April.

While only a 2-year notes were offered at 13.01 per cent in March, raising N2 billion at the debut offer, the yields on the savings bond had dropped in April.

The DMO last week offered the 2-year note at 12.794 percent and the 3-year note at 13.794 percent raising N419.33 million and N868.69 million from the notes respectively.

The FGN savings bond was launched in March as part of efforts to bring in more retail investors to the bond market

The savings bond is to provide a platform where retail investors to partake in the infrastructural development of the country as well as make money on their investments.

Subscribers to the bond can start with a minimum subscription amount of N5,000 with additional investments in multiples of N1,000 and maximum of N50 million.

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