The Debt Management Office (DMO), has opened offers for subscription to Federal Government of Nigeria (FGN) savings bonds for October 2024 at an interest rate of 17.08 per cent and 18.08 per cent respectively.
The DMO in a statement on Monday in Abuja, said the first offer is a two-year FGN savings bond due on October 16 2026, at interest rate of 17.084 per cent per annum.
The second offer is a three-year FGN savings bond due on October 16 2027, at interest rate of 18.084 per cent per annum.
The Opening date for the offer is October 7, 2024, the closing date is October 11, 2024, the settlement date is October 16, 2024, while coupon settlement dates are January 16, April 16, July 16 and October 16.
“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 date,” the DMO said.
It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
The debt management office also added that they are listed on the Nigerian Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks.
