DMO Offers January Bonds For Subscription
Umoru Abdulkadir
The nation’s Debt Management Office (DMO) has offered for subscription, Savings Bonds for January and is open to receive applications from subscribers.
In the offer document released on Monday, January 6, 2020, the DMO noted the offer is expected to be subscribed at the following interest rates, 2-Year FGN Savings Bond due January 15, 2022, at 7.144 per cent per annum and 3-Year FGN Savings Bond due January 15, 2023, at 8.144 per cent per annum respectively.
According to the document, the opening date for the subscription today, Monday, January 2020, while the closing date would be Friday, January 10, 2020.
Likewise, the settlement date is scheduled for January 15, 2020, while the Coupon Payment Dates would be April 15, July 15, October 15 and January 15 respectively.
The Savings is issued by the Federal Government of Nigeria 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 N50,000 with quarterly interest payable and bullet repayment on the maturity date.
The status of the Bonds includes but not limited to the following: Qualifies as securities in which trustees can invest under the Trustee Investment Act. 2. 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. 3. Listed on the Nigerian Stock Exchange. 4. Qualifies as a liquid asset for liquidity ratio calculation for banks.
The Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.
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