DMO Offers Two New FGN Bonds
The Debt Management Office (DMO) on Monday announced two new Federal Government of Nigeria (FGN) savings bonds offer at N1,000 per unit for October.
According to the DMO, on its website, the first one is a two-Year FGN Savings Bond due in October 12, 2024, at interest rate of 11.382 per cent per annum.
The second offer is a three-year FGN savings bond due in October 12, 2025, at interest rate 12.382 per cent per annum
“Offer opens on October 4 and closes on October 7. Settlement date is October 12, while coupon payment dates are January 12, April 12, July 12 and October 12.
“They are subject to a minimum subscription of N5, 000, and multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.
“Interest payment is made quarterly, while bullet repayment (principal amount) will be made on the maturity date,” it said.
It added that the the FGN savings bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“It also 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, among other investors.
“ Its listed on the Nigerian Stock Exchange and qualifies as liquid asset for liquidity ratio calculation for banks”
“It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the DMO said.
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