DMO offers 2 FGN bonds for public subscription

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Abuja, Jan. 8, 2024 – The Debt Management Office (DMO) on Monday announced for public subscription two Federal Government of Nigeria (FGN) savings bonds. 

The two-year FGN savings bond will be due on Jan. 17, 2026 at the interest rate of 11.033% per annum, while the three-year FGN savings bond will also due on Jan.17, 2027, at the interest rate of 12.033% per annum. 

According to the DMO, the opening date for the two bonds is Jan. 8 and close on January 12, 2024 with settlement date scheduled for Jan 17.

The coupon payment dates are April 17, July 17, October 17 and Jan. 17.

The DMO said the bonds were being 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 is made on the maturity date.

“The savings bonds, like all other federal government securities, are backed by the federal government’s full faith and credit and charged upon Nigeria’s general assets.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investments,’’ the DMO said. (GBN)

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