DMO Opens Savings Bonds for Subscriptions
The Debt Management Office (DMO) has listed two Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.
According to a release by the DMO, the first offer is a two-year FGN Savings Bond due on March 11, 2028, at an interest rate of 12.906 per cent per annum.
It listed the second offer as a three-year FGN Savings Bond due on March 11, 2029, at an interest rate of 13.906% per annum.
“Opening date is March 2, closing date March 6, settlement date March 11, while coupon payment dates are June 11, Sept. 11, Dec. 11 and March 11,” it said.
It said that FGN bonds were backed by the true faith and credit of the Federal Government and were charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, amongst others.
“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,” the DMO said.
It also said that all FGN bonds qualify as liquid assets for banks’ liquidity ratio calculations. # DMO Opens Savings Bonds for Subscription at N1,000 Money Market Rate Mixed, Banks Boost SDF Placement
