DMO Issues 2 Savings Bonds With High Interest Rates

The Debt Management Office (DMO), says it has issued two new savings bonds with interest rates of 12.492 percent and 13.492%, respectively which is payable after two and three years.

The DMO disclosed in a statement yesterday that offers for subscription of the bonds would start on November 7 and will close by 11 while settlement date is on 16th with coupon payment dates slated for; February 16, May 16, August 16, November 16.

It stated that the bond can be purchased with 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 N50,000,000.

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“The bond qualifies as securities in which trustees can invest under the Trustee Investment Act. Qualifies as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, amongst other investors. Listed on The Nigerian Stock Exchange. Qualifies as a liquid asset for liquidity ratio calculation for banks.”

While stating that it is payable quarterly, redemption would be a bullet repayment on the maturity date.

It assured investors that it is backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

According to the statement, interested investors should contact stockbroking firms appointed as DMO’s distribution agents.