The Debt Management Office (DMO), on behalf of the Federal Government, has offered two FGN savings bonds for subscription at interest rates of 13.071 per cent and 14.071 per cent per annum.
According to a statement issued by the DMO on Tuesday in Abuja, the first offer is a two-year FGN savings bond due on Oct. 14, 2028, with an interest rate of 13.071 per cent per annum.
The second is a three-year FGN savings bond due on Oct. 14, 2029, with an interest rate of 14.071 per cent per annum.
The offer opened on Oct. 5 and will close on Oct. 9, while the settlement date is Oct. 14. Coupon payments will be made quarterly on Jan. 14, April 14, July 14 and Oct. 14.
The DMO said the bonds are offered at N1,000 per unit, with a minimum subscription of N5,000 and additional subscriptions in multiples of N1,000, subject to a maximum of N50 million.
“Interest is payable quarterly, while bullet repayment is on the maturity date,” the DMO said.
It added that the bonds are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria.
The DMO said the securities qualify for investment by trustees under the Trustee Investment Act and are eligible as government securities under the Company Income Tax Act and Personal Income Tax Act.
The bonds are also listed on the Nigerian Exchange Ltd. and qualify as liquid assets for banks’ liquidity ratio calculations.
FGN savings bonds are debt securities issued by the DMO on behalf of the Federal Government and are designed for retail investors seeking guaranteed returns while lending to the government for national development.
