By KADIRI ABDULRAHMAN

The Debt Management Office (DMO), on behalf of the Federal Government, has announced an offer of two FGN bonds for subscription at N1,000 per unit.

According to the DMO, the first offer is two-year FGN Savings Bond due Aug. 12, 2028 at interest rate of 13.96 per cent per annum.

The second offer Is a three-year FGN Savings Bond due in Aug. 12, 2029 at interest rate of 14.96 per cent per annum.

It said that the opening date for the offer is Monday (today), while closing date is Aug. 7, settlement date is Aug. 12, while coupon payment dates are Nov. 12, Feb. 12, May 12 and Aug.12.

“Subscription is 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, and bullet repayment is on the maturity date, ” the DMO said.

The DMO added that the FGN savings bonds, like all other Federal Government securities, were backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

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

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, among other investors.

“They are listed on the Nigerian Exchange Ltd., and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.

The News Agency of Nigeria (NAN) reports that the FGN Savings Bond is a retail debt instrument issued by the DMO on behalf of the Federal Government.

It is specifically design’d to enable retail investors and average earners to participate in government debt securities with lower capital requirements than standard FGN bonds.

Subscription to FGN savings bonds means one is lending money to the federal government, which agrees to pay interest (coupon) at regular intervals and to repay the principal when the bond matures. (NAN)

Update news