• Monday, December 04, 2023
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DMO offers 2 new FGN savings bonds for subscription

DMO offers 2 new FGN savings bonds for subscription

The Debt Management Office (DMO) on Monday announced an offer of two fresh Federal Government of Nigeria (FGN) Savings Bonds for subscription at N1,000 per unit.

According to the DMO, the first offer is a two-year FGN savings bond due on August 16, 2025, at an interest rate of 9.634 percent per annum.

“The second offer is a three-year FGN Savings Bond due on Aug. 16, 2026, at 10.634 per cent interest rate per annum.

“The offer is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Opening date is August 7, closing date is August 11, the settlement date is August 16, and coupon payment dates are November 16, February 16, May 16 and August 16.’’

According to the DMO, interest is payable quarterly while bullet repayment (principal sum) is on the maturity date.

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It stated that FGN savings bond qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

“Qualifies as a liquid asset for liquidity ratio calculation for banks,” it said.

It added that the FGN saving bond which is on the Nigerian Exchange Limited is backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.