The Nigerian Debt Management Office has opened for subscription two Federal Government savings bonds at N1,000 per unit.
The FGN bonds allow investors to a minimum subscription of N5,000 in multiples of N1,000, and a maximum subscription of N50m, the DMO stated on its official website on Tuesday.
According to the DMO, the first offer is a two-year FGN Savings Bond, due in May 12, 2023 at an interest rate of 7.753 per cent per annum.
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The second offer is a three-year FGN Savings Bond, due in May 12, 2024 at an interest rate of 8.753 per cent per annum.
The DMO further stated that the opening date for subscription was May 3, to close May 7, while settlement date is May 12,. It added that coupon payment dates are August 12 and November 12, 2021, and February 12 and May 12, 2022 respectively.
“They [the bond] qualify as securities to 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, listed in the Nigerian Stock Exchange.
“It qualifies as a liquidity ratio calculation for banks,” the DMO stated.
The hinted that the bonds were backed by the full faith and credit of the government, and charged upon the general assets of Nigeria.
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