DMO Raises N8.8bn from Savings Bond

Nume Ekeghe

The Debt Management Office (DMO) has stated that it raised N1.367 billion from the Federal Government Savings Bond auction held this month bringing the total value of the amount raised in the year to N8.824 billion. 

Investors had put in N451.037 million in the two-year Savings Bond which was raised at 8.075 per cent and N915.865 million in the three year paper raised at an interest rate of 9.075 per cent per annum.

The FGN Savings Bond, which was introduced by the DMO is specifically designed for retail investors, and to encourage financial inclusion with investors being able to invest from N5, 000. Last month, the DMO had raised N1.874 billion from the Savings bond.

In June, 701 retail investors had put N769.92 million in the two year Savings bond, which was raised at 8.205 per cent while 621 investors had put N1.104 billion in the 3 year bond which was raised at 9.205 per cent.

A total of N1.106 billion had been raised in May this year with investors putting N748.45 million and N358.01 million in the three and two year bonds raised at 8.934 per cent and 7.934 per cent respectively.

The DMO had raised N4.47 billion through the FGN Savings Bond between January and April this year compared to N3.33 billion which it raised in the comparable period of 2021. Last year, the total amount raised from the Savings Bond stood at N8.39 billion which is a significant increase compared to N3.63 billion raised in 2020. The Savings Bond auction did not hold for three months in 2020 due to the Covid-19 lockdown.

This year, the highest amount raised at the Savings Bond auction was in March when N2.15 billion had been raised. In April, investors’ interest had waned as N1.13 billion had been raised through the bond designed specifically for retail investors.