The Debt Management Office (DMO), yesterday, announced its first bonds issuance for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.
A statement by the DMO listed the bonds to include a two-year FGN Savings Bond due on January 11, 2025, at the interest rate of 9.6% yearly, and a three-year FGN Savings Bond due on January 11, 2026, at the interest rate of 10.6%/year.
The sale of the bonds opens today and closes on January 6, with settlement date, January 11, while coupon payment dates would 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 is payable quarterly while bullet repayment (principal sum) is on maturity,” it added.
The DMO said the FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and 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 liquidity ratio calculation for banks,” it said.
It added that the bonds are backed by the full faith and credit of the FGN and charged upon the general assets of the country.
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.
