DMO offers 2 savings bonds for subscription at N1,000 per unit

The Debt Management Office (DMO) has offered two Federal Government of Nigeria (FGN) Savings Bonds for subscription at one thousand naira per unit.

The DMO announced the bond offer in Abuja on Monday.

It listed the first offer as a two-year FGN Savings Bond due on June 14, 2025, at a 10.301 percent interest rate per annum.

The second offer is a three-year FGN Savings Bond, due on June 14, 2026, at an interest rate of 11.301 percent per annum.

“The opening date for the offers was June 3, the closing date is June 9, and the settlement date is June 14.

“Coupon payment dates are Sept. 14, Dec. 14, March 14, and June 14.

“They are offered at N1,000 per unit, subject to a maximum subscription of N5,000, and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly, and the bullet repayment (principal amount) is done on maturity,” the DMO said.

It said that FGN Savings Bonds were backed by the full faith and credit of the Federal Government of Nigeria and charged against the general assets of the country.

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

“They qualify as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors.

“They are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculations for banks,” it said.