CEM REPORT | The Debt Management Office (DMO) has listed two new Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit, NAN has reported.
According to the DMO, the first one is a June 15, 2024 maturing two-year savings bond, at an interest rate of 8.20 per cent per annum, while the second is a June 15, 2025 maturing three-year savings bond at 9.20 per cent per annum interest rate.
“Offer opens on Monday, June 6 and closes on Friday, June 10; settlement date is June 15.
“They are offered at N1,000 per unit, subject to a minimum subscription of N5000, and in multiples of N1000 thereafter, subject to a maximum subscription of N50 million.
“Interest payment will be made quarterly, while total sum invested (bullet repayment) will be made on maturity date,’’ the DMO stated.
It added that the FGN bonds qualify as securities in which trustees could invest under the Trustee Investment Act.
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“They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act; for Tax Exemption and for Pension Funds, among others,’’ it stated.
The savings bonds are listed on The Nigerian Stock Exchange and qualify as liquid asset for liquidity ratio calculation in banks.
“FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,’’ it also stated.
The DMO urged interested investors to contact stock broking firms appointed as distributors or visit its website: www.dmo.gov.ng for the list of distributors.
