The Debt Management Office, DMO, has supplied two Federal Government of Nigeria, FGN, bonds for subscription in October at N1,000 per unit.
According to an announcement issued by DMO, the primary provide is a two -year FGN financial savings bonds due in Oct. 16, 2026 at an rate of interest of 17.084 per cent each year.
The second provide is a three-year FGN financial savings bond due in Oct. 16, 2027, at an rate of interest of 18.084 per cent each year.
Opening date for the provides is Oct. 7, with time limit set for Oct. 11, settlement date Oct. 16, whereas coupon fee dates are Jan. 16, April 16, July 16 and Oct. 16.
“They are supplied at N1,000 per unit topic to a minimal subscription of N5,000 and in multiples of N1,000 thereafter, topic to a most subscription of N50 million.
“Interest is payable quarterly, while bullet repayment (principal sum) is on the maturity date,” DMO mentioned.
The DMO additionally mentioned that the financial savings bonds, like all different FGN securities have been backed by the total religion and credit score of the Federal Government.
“They qualify as securities by which trustees can make investments beneath the Trustees Investment Act.
“They qualify as authorities securities throughout the which means of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst different buyers.
“They are listed on the Nigerian Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks,’’ it mentioned.
NAN
