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DMO Opens FG Savings Bonds’ Subscription At N1,000 Per Unit

The Debt Management Office (DMO) has offered for subscription two years and three years Federal Government Savings Bonds at N1,000 per unit.

A circular published on DMO’s website indicated that the two years bond with Feb. 10, 2023 as due date would attract an interest rate of 4.214 per cent per annum while the three-year bond, with Feb.10, 2024 as due date, will attract an interest rate of 5.214 per cent per annum.

According to the circular, the bond is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50, 000,000.
It stated: “DMO on behalf of the Federal Government of Nigeria offers for Subscription and authorized to receive applications for the Federal Government of Nigeria Savings Bond at the following interest rates:

“Two-Year FGN Savings Bond due Feb. 10, 2023: 4.21 per cent per annum, three-year FGN Savings Bond due Feb. 10, 2024: 5.214 per cent per annum.”

The Office listed opening date of the bonds as Feb. 1, closing date as Feb. 5, 2021 and settlement date as Feb. 10, 2021.
It also stated that Coupon payment dates are May 10, Aug. 10 and Nov. 10, 2021 and assured that the bonds were backed by the “full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.’’

The DMO urged interested investors to contact the stock broking firms appointed as distribution agents by it for subscription.

It would be recalled that the DMO had unveiled plans by the Federal Government to redeem the country’s 6.75% USD500 million January 2021 Eurobond, which matured on January 28, 2021.

The January matured 2021 Eurobond, which was issued in January 2011, was Nigeria’s first bond issuance at the International Capital Market (ICM).

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