DMO lists two savings bonds to be offered in October
The Debt Management Office (DMO) in October floated two Federal Government of Nigeria (FGN) bonds at N1,000 each.
According to a statement released by the DMO, the first offer is a two-year FGN savings bond with an annual interest rate of 17.084% due on October 16, 2026.
The second offer is for a three-year FGN savings bond due October 16, 2027, with an annual interest rate of 18.084%, the news agency reported.
Offer start date is October 7th, closing date is October 11th, payment date is October 16th, coupon payment date is January 16th, April 16th, July 16th, October 16th.
“These will be offered at 1,000 Naira per unit subject to a minimum subscription of 5,000 Naira and thereafter in multiples of 1,000 Naira, subject to a maximum subscription of 50 million Naira.
“Interest will be paid quarterly, while lump-sum repayment (principal) will be made on the maturity date,” the DMO said.
The DMO also said that the savings bonds, like all other FGN securities, are backed by the full faith and credit of the Federal Government.
“These qualify as securities that can be invested by the fiduciary under the Fiduciary Investment Act.
“These qualify as government securities within the meaning of the Corporate Income Tax Act and Personal Income Tax Act for the purposes of tax exemption for pension funds among other investors.
“These are listed on the Nigerian Exchange Limited and qualify as liquid assets for the calculation of the bank’s liquidity ratio,” it said. #DMO lists 2 savings bonds to be offered in October
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