The Debt Management Office (DMO), has announced the offering of two Federal Government of Nigeria (FGN) bonds for subscription.
The Office disclosed on Monday that first offer is a two-year FGN savings bond, which will be due on May 18, 2024, at an interest rate of 7.93 per cent per annum while the second is a three-year FGN savings bond, which will be due on May 18, 2025, at 8.93 per cent per annum.
It stated that the opening date for the bonds is May 9, while the closing date and settlement date is May 18. Also, it indicated that the Coupon payment dates remained August 18, November 18, February 18 and May 18.
DMO stated: “The bonds are offered 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.
Interest payment will be made quarterly, while bullet repayment will be made on the maturity date”, it added.
According to the DMO, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
It stated: “They qualify 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 other investors.
“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks”, the DMO added.
It further maintained that the bonds were backed by the full faith and credit of the Federal Government and charged upon the general assets of the country
