DMO issues new savings bonds to be subscribed at N1,000

The Debt Management Office (DMO) has announced two additional Federal Government Savings Bonds for August at N1,000 per unit.

He said in Abuja on Monday that the first offering is a two-year savings bond maturing August 10, 2024 at an interest rate of 9.41% per annum.

The second is a three-year savings bond maturing August 10, 2025, at an interest rate of 10.41% per annum.

According to the DMO, the bonds are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.

He also said the offer opened on Monday (August 1) and will close on Friday (August 5), adding that coupon payments will begin on November 10.

“Interest is payable quarterly while bullet repayment (the principal sum) will be made on the maturity date. FGN bonds are considered securities in which trustees may invest under the Trustee Investment Act,” a said the DMO.

He added: “They qualify as government securities within the meaning of the corporate income tax law and the personal income tax law for the tax exemption of pension funds, among other investors. They are listed on the Nigerian Stock Exchange and are considered liquid assets for the calculation of the liquidity ratio for banks.”

He also mentioned that the bonds would be guaranteed by the full faith and credit of the government and charged against the general assets of the country.