The Debt Management Office (DMO) has announced an offer of two FGN savings bonds for subscription at N1,000 per unit.
By Kadiri Abdulrahman
The Debt Management Office (DMO) has announced an offer of two FGN savings bonds for subscription at N1,000 per unit.
According to a statement by the DMO on Wednesday in Abuja, the first offer is a two-year FGN savings bond due on July 16, 2027, at 15.762 per cent interest rate per annum.
The second offer is a three-year FGN savings bond due on July 16, 2028, at interest rate of 16.762 per cent per annum.
The state
ment says the opening date for the offer is July 7, with closing date set at 11, settlement date 16, and the coupon payment dates Oct. 16, Jan. 16, April 16 and July 16 annually.
According to the DMO, the bonds are offered at N1,000 per unit subject to a minimum subscription of N5, 000 in multiples of N1, 000 and thereafter subject to a maximum subscription of N50 million.
”Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date.
“FGN savings bonds are backed by the full faith and credit of the Federal Government, and are charged upon the general assets of Nigeria.
”They qualify as securities in which trustees can invest under the Trustee 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 others, and they are listed on the Nigeria Exchange Limited.”
The DMO further said that they qualified as liquid assets for liquidity ratio calculations for banks. (NAN)(www.nannews.ng)