July 04, (THEWILL) – The Debt Management Office (DMO) has announced the offer for subscription of the July 2022 Federal Government Savings Bond to investors.
The DMO in a circular issued on Monday, however reduced the rates for the two-year and three-year savings bond.
The new rates are 2-Year FGN Savings Bond due July 13, 2024 at 8.075 per cent per annum and 3-Year FGN Savings Bond due July 13, 2025 at 9.075 per cent per annum.
A breakdown of the bonds shows that the 2-year FGN savings bond will be due on July 13, 2024, at 8.075% per annum and the 3-year FGN Savings Bond which will be due on July 13, 2025, at 9.075% per annum.
This reflects a 13-basis point reduction in the 2-year bond and 13-basis point fall in the 3-year bond, between June and July.
“Unit of sale: 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 N50,000,000
“A month-on-month comparison shows that the rates for the two tranches are lower compared to 8.205% and 9.205% offered for the 2-year FGN savings bond due June 15, 2024, and 3-year FGN Savings bond due June 15, 2025, respectively”, the circular added.
According to the disclosure, the security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
The FGN Savings Bond qualifies as securities in which trustees can invest under the Trustee Investment Act.
It also qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, among other investors.
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