DMO Offers 2 FGN Savings Bonds for Subscription at N1000 per Unit

By January 3, 2023 NEWS

The Debt Management Office (DMO) has announced an offering for two federal government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

The offer, which marks DMO’s first issuance for 2023, will be opened on January 3 and close by January 6.

The FGN savings bond offer is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.

In a statement on Monday, DMO said the first bond is a two-year FGN savings bond maturing on January 11, 2025, at an interest rate of 9.6 percent per annum.

The second issuance is a three-year FGN savings bond due on January 11, 2026, at the interest rate of 10.6 percent per annum.

The organisation said the settlement date is January 11, 2023, while interest payments on the offer will begin on April 11, 2023; with subsequent payments to be made quarterly (July 11, October 11, and January 11) after the indicated date.

“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,” DMO said.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity.”

The DMO also said the FGN savings bonds qualify as securities in which trustees could invest under the trustee investment act.

“They also qualify as government securities within the meaning of company income tax act (CITA) and personal income tax act (PITA) for tax exemption for pension funds,” it added.

“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.”

The agency added that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the count.

Read the original article on The Cable