The Debt Management Office (DMO) has announced the offer for subscription of the November 2021 Federal Government Savings Bond to investors.
The announcement, which indicates that there are 2-year and 3-year savings bonds for subscription, was contained in a circular issued by the DMO and published on its website.
A breakdown of the bonds details showed that the 2-year FGN Savings Bond will be due on November 10, 2023, at 7.376% per annum while the 3-year FGN Savings Bond will be due on November 10, 2024, at 8.376% per annum.
The Office further stated that the Opening Date for the subscription was November 1st, 2021 and that the Closing Date would be Friday, November 5th, 2021.
In addition, the DMO disclosed that the Settlement Date would be November 10th, 2021; Coupon Payment Dates – February 10, May 10, August 10, and November 10; adding that the Unit of sale is 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 disclosure further states that the security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
In addition, 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, amongst others.
A cursory appraisal of the latest bond issuance reflected that on a month-on-month comparison, the rates for the two tranches are higher compared to 6.899% and 7.899% offered for the 2-year FGN savings bond due October 13, 2023, and 3-year FGN Savings Bond due October 13, 2024, respectively.
