DMO announces 2 new FGN savings bond offers

The Debt Management Office (DMO), on Monday released two New Federal Government of Nigeria (FGN) savings bond offers for subscription. According to the DMO, the first offer is a two-year FGN savings bond due in Nov.15, 2025 at interest rate of 12.464 Per cent per annum. The second offer is a three-year FGN savings bond, due in Nov. 15, 2026, at interest rate of 13.464 per cent per annum. It said that they were 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. “Opening date for the offers is Nov. 6, closing date is Nov. 10, settlement date is Nov. 15, while coupon payment dates are Feb. 15, May 15, Aug. 15 and Nov. 15,” the DMO said. It said that interests for FGN savings bonds were payable quaterly, while bullet repayment was on the maturity date. According to the DMO, they are backed by the full faith and credit of Nigeria and charged upon the general assets of Nigeria. “They qualify as securities in which trustees can invest under the Trustee Investment Act. “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. “Listed in the Nigerian Exchange Limited; and qualify as liquid assets for liquidity ratio calculation for banks,” it said.