The Debt Management Office has made public two Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.
On Monday in Abuja, the first offer is a two-year FGN savings bond due on 21 August 2026, at interest rate of 17.373 per cent per annum.
The second offer is a three-year FGN savings bond due on 21 August 2027, at interest rate of 18.373 per cent per annum.
Today 12th of August 2024 marks the Opening date for the offer and the closing date is 16 August, the settlement date is 21 August, while coupon settlement dates are 21 November, 21 February, 21 May and 21 August.
The DMO said “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 N50 million and the interest is payable quarterly while bullet repayment (principal sum) is on maturity date.”
It assured that FGN savings bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria saying that ‘They qualify as securities in which trustees can invest under the Trustee Investment Act and 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.
