FG opens December savings bonds subscription at N1,000 per unit

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The Federal Government has opened subscriptions for two tranches of its Savings Bonds for the month of December, the Debt Management Office has announced.

In a statement released Wednesday, the DMO said the offers include a two-year FGN Savings Bond due December 10, 2027, with an annual interest rate of 12.838 per cent, and a three-year savings bond due December 2028 at 13.839 per cent per annum.

“Opening date is December 1, settlement date is December 10, while coupon payment dates are March 10, June 10 and December 10.

“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 the bullet repayment (principal sum) will be made on the maturity date,” the DMO said.

It added that, like other Federal Government securities, the bonds are backed by the full faith and credit of the government.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the 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 Ltd., and qualify as liquid asset for liquidity ratio calculation for banks, and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.

NAN

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