DMO Opens Savings Bonds for Subscription
The Debt Management Office (DMO), on behalf of the Federal Government, has offered two FGN savings bonds for subscription in the month of December.
According to a statement by the DMO, the first offer is a two-year FGN savings bond due on Dec. 10, 2027, at 12.838 per cent interest rate per annum.
The second offer is three-year FGN savings bond due in December 2028, at 13.839 per cent interest rate per annum. “Opening date is Dec.1, settlement date is Dec. 10, while coupon payment dates are March 10, June 10 and Dec. 10.
“They 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 ofN50 million.
“Interest is payable quarterly while the bullet repayment (principal sum) will be made on the maturity date,” the DMO said.
It also said that the savings bonds, like all other FGN securities are backed by the full faith and credit of the Federal Government.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.
“They are listed on the Nigerian Exchange Ltd., and qualify as liquid asset for liquidity ratio calculation for banks, and they qualify as a liquid assets for liquidity ratio calculation for banks,” it said. Lasaco Launches AI Tool to Speed up Motor Claims
