DMO opens 2 FG bonds for subscription

The Debt Management Office (DMO), has announced the opening of two Federal Government (FGN) savings bonds for subscription 1000 per unit.

According to details obtained from DMO’s Website, investors are entitled to a minimum subscription of 5,000 and in multiples of 1,000 thereafter, and subject to a maximum subscription of 50 million.

The first offer, according to the DMO, is a two-year FGN Savings Bond due in 12, 2023, with interest rate of 7.753 per cent per annum.

The second offer is a three-year FGN Savings Bond due in 12, 2024, an interest rate of 8.753 per cent per annum.

Opening date for subscription is 3, and closing date is 7, while settlement date is 12, and coupon payment dates are Aug. 12 and Nov. 12 , 2021 and Feb. 12 and May 12, 2022.

“They qualify as securities to which trustees can invest under the Trustee Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension, listed in the Nigerian Stock Exchange.

“It qualifies as a liquidity ratio calculation for banks,” DMO stated.

It added bonds were backed by the full faith and credit of the Federal Government, and charged upon the general assets of Nigeria. (NAN)