BUSINESS

DMO Offers 2 More FGN Bonds For Subscription At N1000 Per Unit

The Debt Management Office (DMO), has announced two Federal Government of Nigeria (FGN) bonds for subscription for the month of February, at N1000 per unit.

In a statement on its website on Tuesday, the DMO explained that the first offer was a two-year FGN Savings Bond due on Feb. 16, 2024, with  interest rate at 7.22 per cent per annum.

The second offer was a three-year FGN Savings Bond due on Feb. 16, 2025, with interest rate of 8.22 per cent per annum, it said.

According to DMO, opening date for both offers is Feb. 7, closing date is Feb. 16, while the settlement dates are May 16, Aug. 16, Nov. 16 and Feb. 16.

It explained that investors needed only N5,000 to subscribe, while the maximum amount for subscription is N50 million.

“It is N1000 per unit, subject to a minimum of N5000 and in multiples of N1000 thereafter, subject to  a maximum of N50 million.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Also, it qualifies 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.

“It is listed in the Nigerian Stock Exchange, and qualifies as a liquid asset for liquidity ratio calculation for banks,” the DMO stated.

It added that the bonds were backed by full faith and credit of the FGN and charged upon the general assets of Nigeria.

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