FGN savings bonds offer for October opens

The Debt Management Office (DMO) has opened the offer for a subscription to two Federal Government savings bonds, the tenth offer in 2024.

One of these bonds is a two-year savings bond due to mature on October 16, 2026, at an interest rate of 17.084 percent per annum, while the other is a three-year savings bond, is due to mature on October 16, 2027, at an interest rate of 18.084 percent per annum. This is payable quarterly.

Both offers opened on October 7, 2024, and will close on October 11, 2024. The settlement date is October 16, 2024, and the coupon payment dates are January 16, April 16, July 16, and October 16, 2025.

They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000. The subscription is subject to a maximum of N50 million.

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According to the DMO, the bonds “qualify as securities in which trustees can invest under the Trustee Investment Act and as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors”.

The offers are also listed on the Nigerian Exchange Limited and qualify as a liquid asset for liquidity ratio calculation for banks.

In September, the DMO allotted a total of N3.592 billion in two separate bond offers. The tw0-year bond, offered at an interest rate of 17.2 percent, got 418 successful subscriptions while the three-year bond, with an interest rate of 18.202 percent got 930 successful subscriptions.