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DMO issues 2 FGN savings bonds at N1,000 per unit

The Debt Management Office (DMO) has announced its Dec. issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit.

According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due in Dec. 14, 2022, at an interest rate of 12.255 per cent per annum.

The second one is a three-year FGN Savings Bond due in Dec. 14, 2025 at 13.255 per cent interest rate per annum.

It said that the opening date for the bonds issuance is Dec.5, closing date is Dec. 9, settlement date, Dec. 14 while coupon payment dates are March 14, June 14, Sept. 14 and Dec. 14.

“They are issued 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 N50million.

“Interest is payable quarterly, while bullet repayment is made in the maturity date, ” it said.

It added that FGN savings bonds 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 Stock Exchange and qualify as liquid asset for liquidity ratio calculation for banks,” it said.

The statement added that they were backed by the full faith and credit of the Federal Government of Nigeria, and charged upon the general assets of the country.