DMO lists 2 FGN savings bonds for subscription at N1,000 per unit

The Debt Management Office (DMO) has listed two FGN savings bonds for subscription for the month of July. It said that the first is a two-year savings bond due on June 15, 2024, at an interest rate of 8.2 per cent per annum. The second is a three-year savings bond due on June 15, 2025, at the n interest rate of 9.2 per cent per annum. The bonds were offered at N1,000 per unit. They are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Opening date for both offers is June 6, while the closing date is June 10. Settlement date is June 15, and coupon payment dates are Sept. 15, Dec. 25, March 15 and June 15. Interest is payable quarterly and bullet repayment is on the maturity date,’’ the 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. They also qualify as liquid assets for liquidity ratio calculation in banks.

“They qualify as securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption and pension fund amongst other investors. They are listed on the Nigerian Stock Exchange Ltd.,’’ the DMO added.