Connect with us

Business

DMO announces first FG borrowing in 2023

Published

on

The Debt Management Office (DMO) on Monday announced the issuance of its first bonds for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.

A bond is loan from an investor to a borrower such as a company or government. The borrower uses the money to fund its operations, and the investor receives interest on the investment.

DMO in a statement announcing the new bond said one is a two-year FGN Savings Bond due in Jan. 11, 2025, at the interest rate of 9.600 percent per annum.

The other is a three-year FGN Savings Bond due in Jan 11, 2026, at the interest rate of 10.600 percent per annum.

The DMO said that the opening date would be Jan. 3, while the closing date would be Jan. 6, and settlement date, Jan. 11, while coupon payment dates would be April 11, July 11, Oct. 11and Jan. 11.

READ ALSO:DMO DG, Oniha, urges Buhari to address petrol subsidy, insecurity over low revenue

DMO offer reads: “They 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.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity.”

The DMO also said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.

It added: “They also 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.

“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.”

DMO also noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × one =