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 agency said the offer will be opened on April 3, and close by April 7, 2023.
In a statement on Monday, DMO said the first offer is a two-year FGN savings bond which will be due on April 12, 2025, at an interest rate of 10.033 percent per annum.
The second issuance, the agency said, is a three-year FGN savings bond maturing on April 12, 2026, at 11.033 percent per annum interest rate. The organization said the settlement date is April 12, 2023, while interest payments on the offer will begin on July 12, 2023; with subsequent payments to be made quarterly (October 12, January 12, and April 12) after the indicated date.
DMO said the bonds are subject to a minimum subscription of N5,000 in multiples of N1,000 thereafter, and a maximum subscription of N50 million.
The agency also said the interest is payable quarterly while bullet repayment (principal sum) is on maturity.
The debt office said the FGN savings bonds qualify as securities in which trustees could invest under the Trustee Investment Act.
“They also qualify as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds,” DMO said.
“They are listed on the Nigerian Stock Exchange Limited and qualify as a liquid asset for liquidity ratio calculation for banks. “They are backed by the full faith and credit of the FGN and charged upon the general assets of the country.’’
The DMO further asked interested investors to contact stock broking firms appointed as distributors.