DMO Issues 2 FGN Savings Bonds At N1,000 Per Unit

isaac aregbesola
Feb, Tue, 2023

Economy/Business

DMO issues 2 FGN savings bonds at N1,000 per unit

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By Kadiri Abdulrahman

The Debt Management Office (DMO), on Monday announced an offer of two Federal Government of Nigeria (FGN) savings bonds at N1,000 per unit to prospective investors.

According to a statement on DMO’s website, the first offer is a two-year FGN savings bond due in Feb. 15, 2025, at 10.043 per cent interest rate per annum.

The second offer is a three-year FGN savings bond due in Feb. 15, 2026, at interest rate of 11.043 per cent per annum.

The News Agency of Nigeria (NAN) reports that the opening date for the offer is Feb. 6, closing date is Feb. 10, settlement date is Feb. 15, and coupon payment dates are May 15, Aug. 15, Nov. 15 and Feb. 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 quaterly, while bullet repayment (principal sum) is made on maturity, ” the DMO said.

It said that FGN bonds qualify as securities in which trustees could invest under the Trustee 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 Stock Exchange Limited and FMDQ Securities Exchange Limited,” it said.

It said that FGN savings bond qualify as liquid asset for liquidity ratio calculation for banks.

According to the statement, it is backed by the full faith and credit of the FGN. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

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