October 07, (THEWILL) – 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.
In a statement on Monday, the DMO said the first offer is a two-year FGN savings bond due on October 16, 2026, at an interest rate of 17.084 percent per annum.
The second offer is a three-year FGN savings bond due on October 16, 2027, at an interest rate of 18.084 percent per annum.
The opening date for the offer is October 7, 2024, the closing date is October 11, 2024 and the settlement date is October 16, 2024, while coupon settlement dates are January 16, April 16, July 16 and October 16.
“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. Interest is payable quarterly, while bullet repayment (principal sum) is on maturity date”, it said.
The Debt Office 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”, it noted, adding that they also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
It added that they are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.
