The Debt Management Office (DMO) has announced its Dec. issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit.
According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due on Dec. 14, 202, at an interest rate of 12.255 percent per annum.
The second one is a three-year FGN Savings Bond due on Dec. 14, 2025, at a 13.255 percent interest rate per annum.
It said that the opening date for the issuance of the bonds is Dec. 5, the closing date is Dec. 9, the settlement date, is Dec. 14 while coupon payment dates are March 14, June 14, Sept. 14, and Dec. 14.
“They are issued 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.
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“Interest is payable quarterly, while bullet repayment is made on the maturity date, ” it said.
It added that FGN savings bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other Investors.
“They are listed on the Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks,” it said.
It added that they are backed by the full faith and credit of the Federal Government of Nigeria, and charged upon the general assets of the country.
