DMO Offers 2 Bonds for Subscription
By Patience Ikpeme
The Debt Management Office (DMO) has offered two Federal Government bonds for subscription in October at N1,000 per unit.
Debt agency announced the offer recently in Abuja stating that the first offer is two-year savings bonds due on October 16, 2026, at an interest rate of 17.084 per cent per annum.
The second offer, according to the DMO, is a three-year savings bond due on October 16, 2027, at an interest rate of 18.084 per cent per annum.
The opening date for the offers is October 7, with the closing date set for October 11.
The settlement date is October 16, while coupon payment dates are January 16, April 16, July 16, and October 16.
The DMO said: “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 stated that the savings bonds, like all other FG securities, were backed by the full faith and credit of the federal government.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of 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 qualify as liquid asset for liquidity ratio calculation for banks.”
