DMO Opens Subscriptions For 2 Federal Gov’t Savings Bonds

The Debt Management Office (DMO) listed two Federal Government of Nigeria savings bonds on Monday, available for subscription at N1,000 per unit.

These offerings mark the first offers in 2024.

The first offer comprises a two-year savings bond set to mature on January 17, 2026, with an interest rate of 11.033 per cent per annum, while the second offer involves a three-year savings bond set to mature on January 17, 2027, featuring an interest rate of 12.033 per cent per annum.

Both offers open on January 8 and close on January 12, with settlement scheduled for January 17. Coupon payments are slated for April 17, July 17, Oct. 17, and Jan. 17.

“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 is made on maturity date,’’ the DMO stated.

These savings bonds, like other Federal Government securities, are backed by the full faith and credit of the Federal Government and are secured against Nigeria’s general assets.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investments,’’ the DMO stated. (NAN)