DMO to offer subscription for FGN savings bond
The Debt Management Office (DMO) has announced that it is offering on behalf of the Federal Government 2 more Federal Government of Nigeria (FGN) savings bonds for subscription.
The first offer is a 2-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 3-year FGN savings bond which will be due on May 18, 2025, at 8.93 per cent, per annum.
This disclosure is contained in a public circular issued by the DMO and can be seen on its official Twitter account.
The DMO said that the opening date for the bonds is May 9, while the closing date and settlement date is May 18, adding that the coupon payment dates are August 18, November 18, February 18 and May 18.
DMO explained that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
The notice partly reads, “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.
“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.”
DMO noted that the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.
Recall that earlier in April the DMO offered for subscription on behalf of the federal government, the February 2022 Federal Government Savings Bond to investors for 2 years and 3 years with interest rates of 7.338 per cent and 8.338 per cent respectively.
A breakdown of the bonds shows that the 2-year FGN savings bond will be due on April 13, 2024, at 7.338 per cent per annum and the 3-year FGN Savings Bond will be due on April 13, 2025, at 8.338 per cent per annum.
