DMO opens FG’s Bonds For subscription

The Debt Management Office (DMO), has announced the opening of two Federal Government (FGN) savings bonds for subscription at N1000 per unit.

According to details obtained from DMO’s website, investors are entitled to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.

The first offer, according to the DMO, is a two-year FGN Savings Bond due on May 12, 2023, with interest rate of 7.753 per cent per annum.

The second offer is a three-year FGN Savings Bond due on May 12, 2024, at an interest rate of 8.753 per cent per annum.

Opening date for subscription is May 3, and closing date is May 7, while settlement date is May 12, and coupon payment dates are Aug. 12 and Nov. 12 , 2021 and Feb. 12 and May 12, 2022.

“They qualify as securities to which trustees can invest under the Trustee Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension, listed in the Nigerian Stock Exchange.

“It qualifies as a liquidity ratio calculation for banks,” DMO stated.

It added that the bonds were backed by the full faith and credit of the Federal Government, and charged upon the general assets of Nigeria.