FG offers 2 savings bonds for subscription at N1,000 per unit

The Debt Management Office (DMO), on behalf of the Federal Government, has announced an offer of two FGN savings bonds for subscription at N1,000 per unit.

The DMO, in a statement issued on Tuesday, said the first offer is a two-year FGN bond due on September 16, 2028, at an interest rate of 14.12 per cent per annum.

The second offer is a three-year FGN bond due on Sept. 16, 2029, at an interest rate of 15.12 per cent per annum.

It said the opening date for the offer is September 7, the closing date is September 11, the settlement date is September 16, while coupon payment dates are December 16, March 16, June 16, and September 16.

The 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.

“Interest is payable quarterly, while bullet repayment is on the maturity date.”

It noted that FGN bonds, like all other federal government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

The DMO 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 and Personal Income Tax Act for exemption for pension funds, amongst other investors.

“They are listed on the Nigerian Exchange Limited and they qualify as liquid assets for liquidity ratio calculation for banks.”

FGN savings bonds are risk-free debt securities issued by the DMO on behalf of the federal government.

They are designed specifically for retail investors, and they allow individuals to earn guaranteed returns while lending money to the government for national development.