FG, DMO Open January Savings Bond For Subscription

The Federal Government has through the Debt Management Office opened the January savings bond offer to investors.

The DMO on Monday offered a two-year and three-year savings bonds for subscription.

The DMO said in a circular that the bonds were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

According to the DMO, the closing date of the offer for subscription is January 10, and is due for settlement on January 15, while the coupon payment dates of the bonds are April 15, July 15, October 15, 2020, and January 15, 2021.

“The bonds qualify as securities in which trustees can invest under the Trustee Investment Act, and qualifies as a government security within the meaning of Company Income Tax Act and Personal Income Tax Act, for tax exemption for pension funds, amongst other investors,” it said.

The DMO said the two-year bonds would be due on January 15, 2022, while the three-year bonds would be due on January 15, 2023, at the annual rates of 7.144 per cent and 8.144 per cent respectively.

According to the statement, the unit of sale is N1,000, subject to a minimum subscription of N5,000, and in multiples of N1,000 thereafter, subject to a maximum subscription of N50m.

“Interested investors should contact the stockbroking firms appointed as distribution agents by the Debt Management Office, or visit the DMO website for the list of distribution agents,” the DMO said.

The savings bond programme, which was introduced in March 2017 to boost domestic investors’ participation in the bond market, was aimed at broadening the country’s funding base and encouraging savings culture among Nigerians.