DMO Issues Two FGN Bonds For Subscription
The Debt Management Office (DMO) has announced two Federal Government of Nigeria (FGN) savings bonds for subscription.
This is its first bond issuance for 2023.
NewsBeatng reports that the announcement was made on Monday, January 2, in a statement issued by the agency.
According to the statement, one is a two-year FGN savings bond due on January 11, 2025, at the interest rate of 9.600% per annum.
The other is a three-year FGN savings bond due on January 11, 2026, at the interest rate of 10.600% per annum.
The DMO said the opening date would be January 3, the closing date would be January 6, and the settlement date, be January 11, while coupon payment dates would be April 11, July 11, October 11 and January 11, 2024.
“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,” the statement added.
The DMO said that FGN savings bonds qualified 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.
“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks,” it said.
It noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.