DMO offers two FGN savings bonds at N1000 per unit

The Debt Management Office (DMO) says it has offered two new federal government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

The agency said the offer, which will open on June 6, will close by June 10. 

According to the circular, the first issuance is a two-year FGN savings bond maturing on June 15, 2024, at an interest rate of 8.20 percent per annum.

The second issuance, it said, is a three-year FGN savings bond, which will be due on June 15, 2025, at 9.20 percent per year. 

The settlement date is June 15, 2022, and interest payments on the offer will begin on September 15, 2022, with subsequent payments to be made quarterly after the indicated date.

According to the DMO, the bonds are subject to a minimum subscription of N5,000, and in multiples of 1,000 units thereafter. 

The agency said the bonds are subject to a maximum subscription of N50 million.

Interest payment will be made quarterly, while bullet repayment is expected on the maturity date, DMO said. 

The agency said the FGN bonds qualify 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 and for pension funds, among others,” it said.

The savings bonds are listed on the Nigerian Exchange and qualify as a liquid asset for liquidity ratio calculation in banks.

“FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the agency said. 

The DMO asked interested investors to contact stock broking firms appointed as distributors or visit its website: www.dmo.gov.ng for the list of distribution agents.