The Debt Management Office (DMO) on Monday announced as its first bond issuance for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.
According to a statement by the DMO, one is a two-year FGN Savings Bond due on January 11, 2025, with an interest rate of 9,600 percent per annum.
The other is a three-year FGN Savings Bond due January 11, 2026, with an interest rate of 10,600 percent per annum.
DMO said that the opening date will be January 3, while the closing date will be January 6, and the settlement date will be January 11, while the coupon payment date will be April 11, July 11, October 11 and January 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 must be paid quarterly while repaying the bullet (principal amount) at maturity,” he added.
The DMO said the FGN Savings Bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
“They also qualify as government securities within the meaning of the Company Income Tax Act (CITA) and the 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 the calculation of liquidity ratios for banks,” he said.
It is noted that the bond is backed by the full faith and credit of the FGN and is charged to the country’s public assets.