DMO lists 2 new FGN savings bonds for subscription.
The Debt Management Office (DMO), on Monday offered two new Federal Government of Nigeria (FGN) bonds for subscription.
The first, a two-year FGN Savings Bond, comes at an interest rate of 7.33 per cent per annum, and would be due on April 13, 2024.
There is also a three-year FGN Savings Bond at an interest rate of 8.33 per cent per annum, due on April 13, 2025.
According to the DMO announcement on its official website, the opening date for the bonds’ sale is April 4, closing date is April 8, while settlement date is April 13.
It said that coupon payment date would be July 13, October 13, January 13 and April 13.
The offer comes at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1000 thereafter, subject to a maximum subscription of N50 million.
Interest on the bonds is payable quarterly, while bullet repayment would by on maturity date.
The DMO said that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) and for Tax Exemption for Pension Funds, among other investors.
“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks,” it said.
It added that they are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.
