DMO offers 2 FG savings bonds for subscription

The Debt Management Office (DMO) has offered two Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

According to a statement by the DMO on Monday in Abuja, the first offer is a two-year FGN savings bond due on Aug. 21, 2026, at interest rate of 17.373 per cent per annum.

The second offer is a three-year FGN savings bond due on Aug. 21, 2027, at interest rate of 18.373 per cent per annum.

The Opening date for the offer is Aug. 12, closing date is Aug. 16, settlement date is Aug. 21, while coupon settlement dates are Nov. 21, Feb. 21, May 21, and Aug. 21.

“They 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 N50million.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity date,” the DMO said.

It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

“They are listed on the Nigerian Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks.