Successful Offering of FGNSB April 2026 and FGNSB April 2027 Bonds Nets N4.2 Billion for Federal Government
During the offering period from April 1 to April 5, 2024, the Federal Government released two bonds: the FGNSB April 2026 and the FGNSB April 2027, boasting maturity periods of two years and three years, respectively. With enticing interest rates of 17.046% and 18.046%, a competitive bidding process ensued.
The FGNSB April 2026, featuring a shorter tenure, garnered a total allotment of N1.23 billion, while its longer counterpart, the FGNSB April 2027, secured a more substantial allotment of N2.99 billion. A total of 558 successful subscriptions were recorded for the 2026 bond and 952 for the 2027 bond, indicating a stronger investor preference for the latter.
Settlement for these bonds took place on April 9, 2024, with both offerings scheduled to mature in April of their respective years, 2026 and 2027. Furthermore, coupon payments will be disbursed quarterly, enhancing the attractiveness of these bonds as a reliable income source for bondholders.
Implications for Investors
This successful bond issuance underscores the robust investor appetite for Nigerian sovereign debt, reflecting confidence in the nation’s fiscal management and economic policies. Moreover, the high participation rates and significant allotments signal market liquidity and investor confidence in the stability of Nigeria’s financial instruments.
For both individual and institutional investors, this development presents a valuable opportunity to secure attractive interest rates with government-backed security. Investing in FGNSB not only promises favorable returns but also provides a secure investment avenue, thereby contributing to funding national development projects.
Key Points to Note
- The Federal Government, through the Debt Management Office (DMO), opened offers for the April 2024 Savings Bond, with interest rates peaking at 18.046% per annum.
- The two-year FGN Savings Bond was issued at 17.046% per annum, while the three-year FGN Savings Bond was issued at 18.046% per annum.
- These bonds are issued monthly by the DMO, with a subscription rate of N1000 per unit, subject to a minimum subscription of N5,000, and subsequent multiples of N1,000, with a maximum subscription limit of N50,000,000.