DMO offers 2 Savings Bonds in December

The Debt Management Office (DMO), has offered two Federal Government of Nigeria (FGN) savings bonds for subscription in December.

The Debt Management Office (DMO), has offered two Federal Government of Nigeria (FGN) savings bonds for subscription in December.

The DMO said on Monday that the first offer was a two-year FGN savings bond due in Dec. 11, 2026, at interest rate of 17.483 per cent per annum.

The second offer was a three-year FGN savings bond due in Dec. 11, 2027 at interest rate of 18.483 per cent per annum.

“Opening date is Dec. 2, closing date is Dec. 6, settlement date is Dec. 11, and coupon payment dates are March 11, June 11, Sept. 11 and Dec. 11.

“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 is on the maturity date, ” it said.

It said that the FGN bonds, like other government securities, were backed by the full faith and credit of the FGN.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors,” the DMO said.

It said that they were listed on the Nigerian Stock Exchange and qualify as liquid asset for liquidity ratio calculation for banks.