DMO opens new savings bonds offer with up to 13.839% interest for investors of December, offering attractive interest rates to retail investors.
According to a statement issued by the DMO, the first instrument is a two-year FGN Savings Bond due on December 10, 2027, with an annual interest rate of 12.838 per cent.
The second is a three-year bond maturing in December 2028, priced at 13.839% per annum.
The subscription window opened on December 1, while settlement is scheduled for December 10. Coupon payments will be made quarterly on March 10, June 10, September 10, and December 10.
The DMO explained that the bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and subsequent multiples of N1,000. Investors can subscribe up to a maximum of N50 million.
As with all Federal Government securities, the savings bonds are backed by the full faith and credit of the Federal Government, ensuring safety and reliability for investors.
The DMO also highlighted the bonds’ additional benefits. They qualify as acceptable securities for trustees under the Trustees Investment Act, and they are recognised as government securities under the Company Income Tax Act and Personal Income Tax Act, granting tax exemptions for pension funds and other eligible investors.
Furthermore, the instruments are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for banks in meeting their liquidity ratio requirements.
The DMO urged retail investors seeking secure and competitive returns to take advantage of the offer.