DMO lists 2 savings bonds for subscription in October

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

According to a statement issued by DMO, the first offer is a two -year FGN savings bonds due in Oct. 16, 2026 at an interest rate of 17.084 per cent per annum.

Supreme News reports that the second offer is a three-year FGN savings bond due in Oct. 16, 2027, at an interest rate of 18.084 per cent per annum.

Opening date for the offers is Oct. 7, with closing date set for Oct. 11, settlement date Oct. 16, while coupon payment dates are Jan. 16, April 16, July 16 and Oct. 16.

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

The DMO also said that the savings bonds, like all other FGN securities were backed by the full faith and credit of the Federal Government.

“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 tax exemption for pension funds among other investors.

“They are listed on the Nigerian Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks,’’ it said.