DMO Opens Subscriptions for two New FGN Savings Bonds in July

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

The offerings include a two-year FGN savings bond with a 16.668 per cent annual interest rate and a three-year FGN savings bond with a 17.668 per cent annual interest rate.

The subscription period runs from July 1 to July 5, with settlement on 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. Interest is payable quarterly while bullet repayment (principal sum) is on the 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 the 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.