As we earlier predicted, the Debt Management Office (DMO) has opened offers for subscription for two-year and three-year tenure of Federal Government of Nigeria (FGN) saving bonds to investors as part of its mandate to raise funds for national development as fiscally desirable.
The Office, in the disclosure on the debt instruments published on its website on Monday, indicated that the offer for subscription will be opened for investors from 7th-11th of August, 2023 and that the bonds would be due on August 26, 2025, for the two-year bonds and August 16, 2026, for the three-year bonds.
It stated: “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds”
On the interest rates based on the tenures of bonds, the DMO clarified that the interest rate for the two-year tenure stands at 9.634% per annum while that of the three-year tenure is 10.634%.
It also stated that the settlement date for both offers were on August 16th and the coupon payment dates were November 16, February 16, May 16, and August 16, adding that interests on these bonds will be paid quarterly.
According to the DMO, the units of subscription are “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 N50,000,000.”
The Office advised interested investors to contact stock brokerage firm listed as agents by the Debt Management Office (DMO) and that the bonds, which are backed by the Federal Government of Nigeria, are listed on the NGX.
