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| Debt Management Office |
The Debt Management Office (DMO) has announced the issuance of two savings bonds for subscription at N1,000 per unit.
The initial offer is a two-year FGN savings bond with a maturity date of November 16, 2024, and an interest rate of 12.492% annually, according to a statement posted on the DMO's website on Monday.
The second option is a savings bond with a three-year maturity date of November 16, 2025, and an annual interest rate of 13.492 percent.
“The offer is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million. Interest is payable quarterly, while bullet payment (principal sum) will be made on maturity,” stated the DMO.
It added, “Opening date is November 7, closing date is November 11, and settlement date is November 16, while coupon payment dates are February 16, May 16, August 16 and November 16.”
The DMO explained that the savings bonds were backed by the federal government’s full faith and credit and charged upon Nigeria’s general assets, noting that “they qualify as securities in which trustees can invest under the Trustee Investment Act.”
It further mentioned that “they also qualify as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst others.”
According to the DMO, the bonds were liquid assets for liquidity ratio calculation for banks and were listed on the Nigerian Stock Exchange.
(NAN)