DMO Offers FG Savings Bonds For Subscription At N1,000 Per Unit

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The Debt Management Office (DMO) has announced an offering for the federal government of Nigeria (FGN) savings bonds at N1,000 per unit.

The FGN savings bond offer, issued by the DMO on behalf of the federal government, targeted retail investors with a guaranteed interest payment.

It was suspended last year for four months due to COVID-19 lockdown. The DMO later resumed the monthly offerings in August 2020.

In a circular posted on its website, the agency said the offer, which opened August 2, will run till August 6.

It added that the offers include two and three-year savings bonds.

According to the circular, the two-year FGN savings bond will be due for redemption on August 11, 2023, at 8.864 per cent per annum, while the three-year offer will be due on August 11, 2024, at 9.864 per cent per annum.

The settlement date is August 11 and the bonds have November 11, February 11, May 11, and August 11 as coupon dates, according to the circular.

The units of sale are 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 N50,000,000.

The interest rate is payable quarterly with bullet repayment expected on the maturity date.

DMO said the offer qualified 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, amongst other investors.

The offer also qualified as securities in which trustees can invest under the Trustee Investment Act.

The DMO assured that the offer was backed by the full faith and credit of the federal government of Nigeria and charged upon the general assets of Nigeria.

– The Cable

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