Finance Markets

DMO lists two new FGN savings bonds for subscription at N1,000 each

Patience Oniha, director-general, DMO, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

The Debt Management Office (DMO) has listed two new Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

According to the DMO, the first one is a two-year savings bond maturing on June 15, 2024, at an interest rate of 8.20 percent per annum.

The second is a three-year savings bond due maturing on June 15, 2025, at 9.20 percent per annum interest rate.

“Offer opens on Monday, June 6 and closes on Friday, June 10; settlement date is June 15.

“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 payment will be made quarterly, while total sum invested (bullet repayment) will be made on maturity date”, the DMO stated.

It added that the FGN bonds qualify as securities in which trustees could invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act; for Tax Exemption and for Pension Funds, among others”, it stated.

The savings bonds are listed on The Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation in banks.

“FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria”, it also stated.

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The DMO urged interested investors to contact stock broking firms appointed as distributors or visit its website: www.dmo.gov.ng for the list of distributors.

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