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

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

By Kadiri Abdulrahman, Abuja.

 

The Debt Management Office (DMO) has announced two additional Federal Government of Nigeria (FGN) savings bonds for offer for the month of August, at the rate of N1,000 per unit.

 

It stated on Monday in Abuja that the first offer was a two-year savings bond due on Aug. 10, 2024, at interest rate of 9.41 per cent per annum.

 

The second is a three-year savings bond due on Aug. 10, 2025, at an interest rate of 10.41 per cent per annum.

 

The DMO added that the bonds were subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.

 

It also stated that the offer would open on Aug. 1 and close on Aug. 5, adding that coupon payments would begin on Nov. 10.

 

“Interest is payable quarterly, while bullet repayment (the principal sum) will be made on maturity date.

 

“The FGN bonds qualify as securities, in which trustees can 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 and qualify as liquid assets for liquidity ratio calculation for banks,’’ 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 the country.

Share this post