The first one is a two-year bond due in October 12, 2024, at interest rate of 11.38 per cent per annum, while the second offer is a three-year bond due in October 12, 2025, at interest rate of 12.38 per cent per annum.
By Saidu Idris
365Daily – The Debt Management Office (DMO) has released two Federal Government Savings Bond offers for October.
The bonds are backed by the full faith and credit of the Federal Government, and charged upon the general assets of the country.
According to a statement issued by the DMO on Tuesday, October 4, 2022, the first one is a two-year bond due in October 12, 2024, at interest rate of 11.38 per cent per annum, while the second offer is a three-year bond due in October 12, 2025, at interest rate of 12.38 per cent per annum.
According to the statement, the bonds are offered at N1, 000 per unit subject to a maximum subscription of N5, 000, and in multiples of N1, 000 thereafter, subject to a maximum subscription of N50 million.
It stated: “Opening date is October 4; closing date is October 7; settlement date, October 12, while coupon payment dates are January 12, April 12, July 12 and October 12.
“Interest is payable quarterly and the bullet repayment (principal sum) is done on maturity.
“FGN Bond qualifies as securities in which trustees can invest under the Trustee Investment Act.
“It qualifies as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension, amongst other Investors.
“It listed on the Nigerian Stock Exchange, and qualifies as liquid asset for liquidity ratio calculation for banks.’’