DMO Opens FGN Savings Bonds for Subscriptions
The Debt Management Office (DMO) has announced it has opened two Federal Government of Nigeria (FGN) Savings Bonds for subscription at N1,000 per unit.
According to a statement published on its website on Monday, the first offer is a two-year FGN Savings Bond, due on Nov. 16, 2024, at an interest rate of 12.492 per cent per annum.
The second offer is a three-year FGN Savings Bond, due on Nov. 16, 2025, at a 13.492 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. DMO says interest is payable quarterly, while bullet payment (principal sum) will be made on maturity.
The offer opening date is Nov. 7, while its closing date will be Nov. 11, and settlement date is Nov. 16, while coupon payment dates are Feb. 16, May 16, Aug. 16 and Nov. 16,” it said.
It added that the savings bonds were backed by the full faith and credit of the Federal Government, and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act.
“They also qualify 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 others,” said the DMO.
It further stated that the bonds were liquid assets for liquidity ratio calculation for banks, and were listed on the Nigerian Stock Exchange. # DMO Opens FGN Savings Bonds for Subscription
