DMO offers two savings bonds for subscription at N1,000 per unit

Debt Management Office (DMO)

The Debt Management Office on behalf of the Federal Government, has announced an offer of two FGN savings bonds for subscription at N1,000 per unit.

According to a statement by the DMO on Tuesday in Abuja, the first offer is a two-year FGN bond due on Oct. 14, 2028, at an interest rate of 13.071 per cent per annum.

The second offer is a three-year FGN bond due on Oct. 14, 2029, at an interest rate of 14.071 per cent per annum.

It said that the opening date for the offer is Oct. 5, the closing date is Oct. 9, the settlement date is Oct. 14, while coupon payment dates are Jan. 14, April 14, July 14 and Oct. 14.

“The FGN savings 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 is payable quarterly, while bullet repayment is on the maturity date,” the DMO said.

It said that FGN bonds, like all other Federal Government securities, are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

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

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

“They are listed on the Nigerian Exchange Ltd., and they qualify as liquid assets for liquidity ratio calculation for banks, ” it said.

The News Agency of Nigeria reports that FGN savings bonds are risk-free debt securities issued by the DMO on behalf of the Federal Government of Nigeria.

They are designed specifically for retail investors, and they allow individuals to earn guaranteed returns while lending money to the government for national development.