Two Federal Government of Nigeria (FGN) savings bonds are being offered for subscription, according to the Debt Management Office (DMO).
The first deal is a two-year, 11.38 percent FGN savings bond that matures on October 12, 2024. The second is a three-year FGN savings bond with a 12.38 percent interest rate that is due on October 12, 2025.
The DMO states that the bond subscription will begin on October 4, 2022, close on October 7, and settle on October 12, respectively.
The offer stated that the coupon payment dates are January 12, April 12, July 12, and October 12. It was published on the DMO Twitter account.
“The bonds 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,” the DMO said.
“Interest payment will be made quarterly while bullet repayment will be made on the maturity date.”
The bonds’ eligibility as securities—in which trustees may invest in accordance with the Trustee Investment Act—was clarified.
“They are eligible for tax exemption for pension funds and other investors under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) as government securities. They are listed on the Nigerian Stock Exchange and meet the criteria for a liquid asset in a bank’s computation of the liquidity ratio, it added.
