DMO offers 2 FGN savings bonds at N1,000 per unit

The Debt Management Office (DMO) has announced its December issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit.

According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due on December 14, 202, at an interest rate of 12.255 percent per annum.

The second one is a three-year FGN Savings Bond due on December 14, 2025, at a 13.255 percent interest rate per annum.

It said that the opening date for the bond issuance is Dec. 5, the closing date is Dec. 9, the settlement date is Dec. 14, and the coupon payment dates are March 14, June 14, Sept. 14, and Dec. 14.

"They are issued 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 is made at the maturity date," it said.

It added that FGN savings bonds 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 and the Personal Income Tax Act for tax exemption for pension funds, amongst other investors."

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

It added that they are backed by the full faith and credit of the Federal Government of Nigeria and charged against the general assets of the country.