Advertisement

DMO offers two FGN savings bonds for subscription at N1,000 per unit

Onanuga: Nigeria isn't delaying interest payments to savings bondholders Onanuga: Nigeria isn't delaying interest payments to savings bondholders

The Debt Management Office (DMO) has offered two federal government savings bonds for subscription at N1,000 per unit.

DMO, in a circular on Monday, said the first offer is a two-year savings bond due on July 10, 2026, at an interest rate of 16.668 percent per annum.

According to the agency, the second is a three-year savings bond due on July 10, 2027, at 17.668 percent interest rate per year.

The DMO said the offers, which opened on July 1, would close on July 5.

Advertisement

The debt office put the settlement date at July 10, while coupon payment dates are made quarterly (October 10, January 10, April 10, and July 10).

“They are issued at N1,000 per unit subject to a minimum subscription of 5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million,” DMO said.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity date.”

Advertisement

The DMO said the saving bonds are backed by the full faith and credit of the federal government of Nigeria (FGN), and chargeable on the country’s general assets.

“They qualify as securities in which trustees can invest under the Trustees Investment Act,” the agency said.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for pension funds amongst other investors.”

The agency further said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.

Advertisement
Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected from copying.