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DMO opens two FG bonds for subscription

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DMO

The Debt Management Office (DMO) has announced the opening of two Federal Government (FGN) savings bonds for subscription at N1000 per unit.

The DMO disclosed this in a statement made available on its website, saying that the investors are entitled to a minimum subscription of N5, 000 and in multiples of N1, 000 thereafter and subject to a maximum subscription of N50 million.

The first offer, according to the DMO, is a two-year FGN Savings Bond due in May 12, 2023, with an interest rate of 7.753 per cent per annum.

The Office explained further that the second offer is a three-year FGN Savings Bond due in May 12, 2024, at an interest rate of 8.753 per cent per annum.

The opening date for subscription is May 3 and the closing date is May 7, while the settlement date is May 12 and coupon payment dates are Aug. 12 and Nov. 12, 2021, and Feb. 12 and May 12, 2022.

DMO said: “They qualify as securities to which trustees can invest under the Trustee Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension, listed in the Nigerian Stock Exchange. It qualifies as a liquidity ratio calculation for banks.”

The office stressed that the bonds were backed by the full faith and credit of the Federal Government, and charged upon the general assets of Nigeria.

Techeconomy.ng previously reported that the DMO said the federal government’s bonds for April worth N150 which were auctioned on Wednesday were oversubscribed by N115.66bn.

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The DMO explained that the total subscription received from the investors for the bonds was N265.66bn, with the shortest tenor undersubscribed.

It stated that the subscription of N34.69bn was received for 16.28884 percent FGN April 2027 bonds; N56.13bn for 12.5 percent FGN March 2035 bond; and N174.86bn for 9.8 percent FGN July 2045 bond which recorded the highest subscription.

 

 

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  1. Pingback: DMO Opens Two FG Bonds For Subscription | Techvalley

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