DMO Opens More FGN Bonds for Subscription
The Debt Management Office (DMO), on Monday, announced the offer of two more Federal Government of Nigeria (FGN) bonds for subscriptions. The first offer is a two-year FGN savings bond which will be due on May 18, 2024, at an interest rate of 7.93 per cent per annum.
The second one is a three-year FGN savings bond which will be due on May 18, 2025, at 8.93 per cent per annum. According to the DMO, the opening date for the bonds is May 9, while the closing date and settlement date is May 18. Coupon payment dates are Aug. 18, Nov. 18, Feb. 18 and May 18.
“The bonds are offered at N1, 000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million. Interest payment will be made quarterly, while bullet repayment will be made on the maturity date, according to DMO.
It explained that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act. READ: Robust Subscription to Keep Rates Tight as CBN Holds Auction
“They 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, among other investors.
“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks,” it said.
According to DMO, the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country. # DMO Opens More FGN Bonds for Subscription