DMO opens subscription for two FGN savings bonds, offers up to 13.5% interest

The Debt Management Office (DMO) has announced an offering for a two-year and three-year Federal Government of Nigeria (FGN) savings bonds.

In a statement on Monday, DMO said the offers, which opened on November 6, 2023, will close by November 10, 2023, at N1000 per unit.

The agency said the first offer is a two-year FGN savings bond due on November 15, 2025, at an interest rate of 12.464 percent per annum.

The second issuance, DMO said, is a three-year savings bond maturing on November 15, 2026, at 13.464 percent per annum interest rate.

The organisation also said coupon payment dates are November 15, 2023, February 15, May 15, August 15 and November 15 2024, respectively.

“They are offered at N1,000 per unit subject to a maximum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million,” DMO said.

“Interest is payable quarterly and the bullet repayment (principal amount) is done on maturity.”

The debt office said the latest offers have a settlement date of November 15, 2023.

DMO said that FGN savings bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.

The debt office said: “They qualify as securities in which trustees can invest under the trustee investment act.”

“They qualify as government securities within the meaning of the company income tax act (CITA) and personal income tax act (PITA) for tax exemption, pension funds, amongst other investors.”

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