Two Federal Government of Nigeria (FGN) savings bonds were listed by the Debt Management Office (DMO) on Monday for N1,000 apiece.
The initial offer is a two-year FGN savings bond with an interest rate of 17.407 percent annually, which is due on May 15, 2026, according to a statement from the debt office. The second offering is a 3.0-year FGN savings bond with a 180.407 annual percentage rate that matures on May 15, 2027.
The subscription will start on May 6 and close on May 10. The settlement date is May 15, and the dates for coupon payments are August 15, November 15, February 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 the 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 assets for liquidity ratio calculation for banks,” it said.
