DMO offers 2 FG savings bonds for subscription

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

DMO disclosed this in a statement on Monday, August 12, 2024.

The first offer is a two-year FG savings bond due on August 21, 2026, at an interest rate of 17.373 per cent per annum.

The second offer is a three-year savings bond due on August 21, 2027, at an interest rate of 18.373 per cent per annum.

The opening date for the offer is August 12, closing date is August 16, settlement date is August 21, while coupon settlement dates are November 21, February 21, May 21, and August 21.

DMO stated: “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.

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

It assured that FG savings bonds are backed by the full faith and credit of the government, and charged upon the general assets of Nigeria.

It added: “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 and Personal Income Tax Act 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.”

The Star