DMO opens February 2022 FGN savings bond for subscription

The Debt Management Office (DMO), on behalf of the federal government, has announced the subscription offering of the February 2022 Federal Government Savings Bond to investors.

This disclosure is contained in a circular issued by the DMO and can be found on its website stating that there are 2 and 3 year savings bonds, with interest rates of 7.22% and 8.22 % respectively.

A breakdown of the bonds shows that the FGN 2-year savings bond will mature on February 16, 2024, at 7.22% per annum and the FGN 3-year savings bond, which will mature on February 16 2025, at 8.22% per year. year.

Strong points

  • Opening date – February 7, 2022
  • Closing date – February 11, 2022
  • Settlement Date – February 16, 2022
  • Coupon payment dates – May 16, August 16, November 16 and February 16

Sales unit : 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 N50,000,000

A month-to-month comparison shows that the rates of the two tranches are lower at 7.542% and 8.542% offered for the FGN 2-year savings bond due January 19, 2024 and the FGN savings bond 3-year maturing January 19, 2024. 2025, respectively.

What you need to know about the offer

  • According to the disclosure, the security is secured by the full faith and credit of the Federal Government of Nigeria and charged against the general assets of Nigeria.
  • FGN Savings Bonds are considered securities in which trustees may invest under the Trustee Investment Act.
  • It also qualifies as government securities within the meaning of the Corporation Income Tax Act (“CITA”) and the Personal Income Tax Act (“PITA”) for the exemption taxation of pension funds, among other investors.