The Debt Management Office (DMO) has announced an offering for two federal government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.
The DMO made the announcement in a statement on Monday in Abuja.
The FGN savings bond offer is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
The agency said the offers will be opened on August 12 and close by August 16.
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According to the statement, the first offer is a two-year FGN savings bond due on August 21, 2026, “at interest rate of 17.373 percent per annum”.
The second issuance, DMO said, is a three-year FGN savings bond due on August 21, 2027, at an interest rate of 18.373 percent per annum.
The organisation said the settlement date is August 21, while coupon settlement dates are November 21, February 21, May 21, and August 21.
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“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,” the DMO said.
“Interest is payable quarterly while bullet repayment (principal sum) is on maturity date.”
The agency also assured that the FGN savings bonds are backed by the full faith and credit of the FGN and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act,” the office added.
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“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.”
The agency said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.
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