DMO offers two FGN savings bonds at N1,000 per unit

Two Federal Government of Nigeria (FGN) savings bonds have been issued by the Debt Management Office (DMO), with the subscription period falling between April 3, and April 7, 2023.

This was disclosed by the debt office in a statement on Monday, informing investors that the subscription fee is N1,000 per unit.

According to the DMO, the minimum subscription for the bonds is N5,000 in multiples of N1,000, while the maximum subscription is N50 million.

DMO said the first bond offer has a two-year maturity date set at April 12, 2025, with an interest rate of 10.033 per cent per annum.

The second savings bond has an 11.033 per cent per annum interest rate and will mature after three years, on April 12, 2026.

READ ALSO: DMO announces FGN savings bonds, invites investors

The breakdown of the payment for the bonds says April 12, 2023, is the settlement date, but payments of interest on the offer will start on July 12, 2023.

Ripples Nigeria learnt that subsequent payments will be made on October 12, January 12, and April 12, while the Bullet repayment, which is the principal investment, will be made on the maturity date.

Commenting on the bonds, DMO said: “Qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.

“Listed on The Nigerian Exchange Limited. Qualifies as a liquid asset for liquidity ratio calculation for banks.”

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