The Debt Management Office (DMO) on Monday offered two Federal Government of Nigeria’s (FGN’s) savings bonds for subscription at N1,000 per unit.
The Office, in a circular on its website, stated that the issuance would be opened on April 4 and run until April 8..
The offer comes 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
According to the Office, the first offer is a 2-year, 7.33 percent per annum interest rate, April 2024 FGN savings bond, while the second is a 3-year, 8.33 percent per annum interest rate, April 2025 FGN savings bond.
It stated that the settlement date would be April 13 while the coupon payment dates would be July 13, October 13, January 13 and April 13, adding that the interest on the bonds would be payable quarterly, while bullet repayment would be on the maturity date.
It assured that the bonds qualified as securities in which trustees can invest under the Trustee Investment Act.
The DMO stated: “They qualify as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) and for Tax Exemption for Pension Funds, among other investors.
“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.
“Backed by the full faith and credit of the federal government and charged upon the general assets of the country”, it added.
It advised interested investors to contact the stockbroking firms appointed as distribution agents by it for subscription.
