DMO Announces First Bonds For 2023
The Debt Management Office (DMO) has announced two Federal Government of Nigeria (FGN) Savings Bonds for subscription, the first for 2023.
The nation’s Debt Office said the first is a two-year FGN Savings Bond due on January 11, 2025, at the interest rate of 9.600 percent per annum, while the other is a three-year FGN Savings Bond due on Jan 11, 2026, at the interest rate of 10.600 percent per annum.
The opening date is Tuesday, Jan. 3, and the closing date is Jan. 6, with the settlement date fixed for Jan. 11, while coupon payment dates would be April 11, July 11, Oct. 11and Jan. 11.
“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,” it added.
The DMO said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“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.
“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks,” it said.
It noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country
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