FG Lists 2 Savings Bonds for Subscription in July
The Federal Government, through the Debt Management Office (DMO), has announced two savings bonds for subscription in July.
According to a statement from the DMO, the first offer is a two-year FGN savings bond due on July 15, 2028, at an interest rate of 14.716 per cent per annum.
The second offer is a three-year FGN savings bond due on July 15, 2029, at an interest rate of 15.716 per cent per annum.
“Closing date is July 10, settlement date is July 15, and coupon payment dates are Oct. 15, Jan. 15, April 15 and July 15.
“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 of N50 million. “Interest is payable quarterly, and bullet repayment is on the maturity date,” it said.
The DMO said that FGN bonds, like other Federal Government securities, are 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 qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, amongst other investors.
“They are listed on the Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks, ” it said.
The FGN savings bond is a retail debt instrument introduced by the DMO on behalf of the Federal Government.
It is specifically designed to democratise government securities, allowing low-to-middle-income earners to participate in the domestic bond market while promoting a national savings culture.
Unlike standard FGN bonds, which typically require millions of Naira in minimum subscriptions and are favoured by institutional investors, the savings bond is tailored for everyday individuals. #FG Lists 2 Savings Bonds for Subscription in July#
