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HomeEconomyNigeria floats 2 savings bonds at N1,000 per unit

Nigeria floats 2 savings bonds at N1,000 per unit

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

According to a statement from the debt office, the first offer is a two-year FGN savings bond due on May 15, 2026, at an interest rate of 17.407 per cent per annum.

The second offer is a three-year FGN savings bond due on May 15, 2027, at the rate of 18.407 per cent per annum.

The opening date for the subscription is May 6, and the closing date is May 10, the settlement date is May 15, and the coupon payment dates are Aug. 15, Nov. 15, Feb. 15 and May 15.

“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 the maturity date,” the DMO said.

It said that FGN savings bonds, like all other FGN 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 Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.

“They are listed on the Nigerian Exchange Limited and FMDQ.

“They qualify as liquid asset for liquidity ratio calculation for banks,” it said.

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