DMO Auctions Two More FG Bonds For Subscription

The Debt Management Office (DMO) says that it is offering 2 more Federal Government of Nigeria (FGN) savings bonds for subscription.

The first offer is a 2-year FGN savings bond which will be due on May 18, 2024, at an interest rate of 7.93% per annum.

The second, is a 3-year FGN savings bond which will be due on May 18, 2025, at 8.93% per annum.

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This disclosure is contained in a public circular issued by the DMO and can be seen on its official Twitter account.

According to the DMO, the opening date for the bonds is May 9, while the closing date and settlement date is May 18, adding that the coupon payment dates are August 18, November 18, February 18 and May 18.

The notice partly reads, “The bonds 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 payment will be made quarterly, while bullet repayment will be made on the maturity date.

“They qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.

It will be recalled that earlier in April the DMO offered for subscription on behalf of the federal government, the February 2022 Federal Government Savings Bond to investors for 2 years and 3 years with interest rates of 7.338% and 8.338% respectively.