DMO Selling Single Digit Interest Rate FGN Bonds
The Debt Management Office (DMO), has announced two Federal Government of Nigeria (FGN) bonds for the month of February are now open for subscription to local investors at N1000 per unit.
In a statement on its website on Tuesday, the DMO explained that the first offer was a two-year FGN Savings Bond due on Feb. 16, 2024, with an interest rate of 7.22 per cent per annum.
The second offer was a three-year FGN Savings Bond due on Feb. 16, 2025, with an interest rate of 8.22 per cent per annum, it said.
According to DMO, the opening date for both offers is Feb. 7, the closing date is Feb. 16, while the settlement dates are May 16, Aug. 16, Nov. 16 and Feb. 16.
It explained that investors needed only N5,000 to subscribe, while the maximum amount for subscription is N50 million.
“It is N1000 per unit, subject to a minimum of N5000 and in multiples of N1000 thereafter, subject to a maximum of N50 million.
“It qualifies as securities in which trustees can invest under the Trustee Investment Act.
“Also, it 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.
“It is listed in the Nigerian Stock Exchange, and qualifies as a liquid asset for liquidity ratio calculation for banks,” the DMO stated.
It added that the bonds were backed by full faith and credit of the FGN and charged upon the general assets of Nigeria. # DMO Selling Single Digit Interest Rate Bonds Read: Interbank Rates Remain at Low Single Digit despite Liquidity Drop
