DMO offers two FGN bonds for subscription

The Debt Management Office (DMO), on Monday announced the offer of two Federal Government of Nigeria (FGN) bonds for subscription.

The first offer is a two-year FGN savings bond which will be due on May 18, 2024, at an interest rate of 7.93 per cent per annum.

The second one is a three-year FGN savings bond which will be due on May 18, 2025, at 8.93 per cent per annum.

According to the DMO, the opening date for the bonds is May 9, while the closing date and settlement date is May 18.

Coupon payment dates are August 18, Nov. 18, Feb. 18 and May 18.

“The bonds 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,” the DMO said.

“Interest payment will be made quarterly, while bullet repayment will be made on the maturity date.”

It explained that the bonds 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 (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.

“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks,” it said.

According to DMO, the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.