DMO offers 2 savings bonds for subscription at ₦1k per unit

News Agency Of Nigeria

June 5, 2023 5:43 PM

Opening date for the offers was June 3, closing date is June 9, while settlement date is June 14.

Director-General of the Debt Management Office (DMO), Patience Oniha [NAN]

The Debt Management Office (DMO) has offered two Federal Government of Nigeria (FGN) Savings Bonds for subscription at ₦1,000 per unit.

The DMO announced the bonds offer in Abuja on Monday. It listed the first offer as a two-year FGN Savings Bond due on June 14, 2025, at 10.301% interest rate per annum.

The second offer is a three-year FGN Savings Bond, due on June 14, 2026, at interest rate of 11.301% per annum.

"Opening date for the offers was June 3, closing date is June 9, while settlement date is June 14.

"Coupon payment dates are September 14, December 14, March 14 and June 14.

"They are offered at ₦1,000 per unit subject to a maximum subscription of ₦5,000 and in multiples of ₦1,000 thereafter , subject to a maximum subscription of ₦50million.

"Interest is payable quarterly and the bullet repayment (principal amount) is done on maturity," the DMO said.

It said that FGN Savings Bonds were backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country.

"They qualify as securities in which trustees can invest under the Trustee Investment Act.

"They qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for Pension Funds amongst other investors.

"They are listed on the Nigerian Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks," it said.

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