The Debt Management Office (DMO), on Monday, announced an offer for subscription of two Federal Government of Nigeria (FGN) savings bonds in its first offer for 2025.
By Kadiri Abdulrahman
The Debt Management Office (DMO), on Monday, announced an offer for subscription of two Federal Government of Nigeria (FGN) savings bonds in its first offer for 2025.
According to a statement by the office, the first offer is a two-year FGN savings bond due on Jan. 22, 2027 at an interest rate of 17.235 per cent per annum.
The second offer is a three-year FGN savings bond due on Jan. 22, 2028 at an interest rate of 18.235 per cent per annum.
`Opening date for the offer is Jan. 13, closing date is Jan. 17, settlement is Jan 25, while coupon payments dates are April 22, July 22, Oct. 22 and Jan. 22.
“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 payment is made quarterly while bullet repayment is on maturity,’’ it said.
According to the DMO, FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
`They qualify as securities in which trustees can 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 for pension funds, amongst other investors,’’ the DMO said.
It added that they are listed on the Nigerian Exchange Limited, and qualify as a liquid asset for liquidity ratio calculation for banks. (NAN)
, on Monday, announced an offer for subscription of two Federal Government of Nigeria (FGN) savings bonds){kind=link}