By Kadiri Abdulrahman, Abuja.
The Debt Management Office (DMO) on Monday announced the offer of two new Federal Government of Nigeria (FGN) savings bonds at N1,000 per unit for September.
According to the DMO, on its website, the first one is a two-year FGN Savings Bond, due in Sept. 14, 2024, at interest rate of 11.04 per cent per annum.
The second offer is a three-year FGN savings bond, due in Sept. 14, 2025, at interest rate 12.04 per cent per annum
“Offer opens on Sept. 5 and closes on Sept. 9. Settlement date is Sept. 14, while coupon payment dates are Dec. 14, March 14, June 14 and Sept. 14.
“They are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.
“Interest payment is made quarterly, while bullet repayment (principal amount) will be made on the maturity date,” it said.
The DMO said that the FGN savings bonds qualified as securities, in which trustees could invest under the Trustee Investment Act.
“It also qualifies 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 others.
“It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” it added.