The Debt Management Office (DMO) announced on Monday the availability of two FGN savings bonds for subscription in July.
The first is a two-year savings bond due on June 15, 2024, with an annual interest rate of 8.2 percent.
The second is a three-year savings bond maturing on June 15, 2025, with an annual interest rate of 9.2 percent.
The bonds were sold for N1,000 per unit.
They are subject to a minimum subscription of N5,000 and subsequent subscriptions in multiples of N1,000, up to a maximum subscription of N50 million.
“Both offers have an opening date of June 6 and a closing date of June 10.”
“The settlement date is June 15th, and the coupon payment dates are September 15th, December 25th, March 15th, and June 15th.”
“Interest is payable quarterly, and the bullet repayment is due on the maturity date,” according to the DMO.
It went on to say that the bonds were backed by the Federal Government’s full faith and credit and were charged against Nigeria’s general assets.
They are also considered liquid assets in banks when calculating liquidity ratios.
“They meet the definition of securities in which trustees can invest under the Trustee Investment Act.”
“They also qualify as government securities for tax exemption and pension fund among other investors under the Company Income Tax Act and Personal Income Tax Act.”
“They are listed on the Nigerian Stock Exchange Ltd.,” said the DMO.