DMO initiates sale of two-year bonds at 13% interest rate

The Debt Management Office (DMO) has opened up the opportunity for retail investors to purchase its savings bond, offering a higher return compared to the previous month’s auction. These adjustments in interest rates come as part of the evolving economic landscape in West Africa’s largest economy.

In a notice released on Monday, DMO provided details of the savings bond offering, specifying that the minimum investment amount is set at N5,000, with a maximum investment cap of N50 million.

This offer reflects an increase of 139 basis points from the previous month, rising from 11.07 percent in October. Additionally, the three-year bond will be available at an interest rate of 13.46 percent, surpassing the 12.07 percent from the previous month’s sale.

The government has set the closing date for November 10, 2023, and the settlement date for November 15, 2023. Investors can anticipate quarterly interest payments, with coupon payment dates scheduled for February 15, May 15, August 15, and November 15.