DMO offers 2 savings bonds for subscription for July

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

They are a two-year FGN savings bond due on July 10, 2026 at interest rate of 16.668 per cent per annum, and a three-year FGN savings bond due on July 10, 2027, at 17.668 per cent interest rate per annum.

Opening date for the offer is July 1, closing date is July 5, and settlement date is July 10, while coupon payment dates are Oct. 10, Jan. 10, April 10 and July 10.

“The offer is at N1, 000 per unit subject to a minimum subscription of 5,000 and in multiples of N1, 000 thereafter, subject to a maximum subscription of N50 million thereafter.

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“Interest is payable quarterly while bullet repayment (principal sum) is on maturity date,” the DMO said.

It said that FGN savings bonds are backed by 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 Trustees Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for pension funds amongst other investors.

“Listed on the Nigerian Stock Exchange, and qualify as a liquid asset for liquidity ratio calculation for banks,” it said.(NAN)

By Kadiri Abdulrahman

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