DMO offers two new FGN savings bonds at N1,000 per unit

The Debt Management Office (DMO) on Monday announced two new Federal Government of Nigeria (FGN) savings bonds offered at N1,000 per unit for September.

According to the DMO, the first one is a two-year FGN Savings Bond due on September 14, 2024, at an interest rate of 11.04 per cent per annum.

The second offer is a three-year FGN savings bond due on September 14, 2025, at an interest rate of 12.04 per cent per annum.

“Offer opens on September 5 and closes on September 9. Settlement date is September 14, while coupon payment dates are December 14, March 14, June 14 and September 14.

“They are subject to a minimum subscription of N5,000, and multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.

“Interest payment is made quarterly, while bullet repayment (principal amount) will be made on the maturity date,” it said.

It added that the FGN savings bonds qualified as securities, in which trustees could invest under the Trustee Investment Act.

“It also qualifies as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.

“It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the DMO said.

(NAN)