The Debt Management Office (DMO) of Nigeria has announced the availability of two new Federal Government of Nigeria (FGN) savings bonds for public subscription. These bonds are being offered at ₦1,000 per unit.
### Key Details of the Bonds:
1. **Two-Year FGN Savings Bond**:
– **Maturity Date**: August 21, 2026
– **Interest Rate**: 17.373% per annum
2. **Three-Year FGN Savings Bond**:
– **Maturity Date**: August 21, 2027
– **Interest Rate**: 18.373% per annum
### Subscription Timeline:
– **Opening Date**: August 12
– **Closing Date**: August 16
– **Settlement Date**: August 21
– **Coupon Payment Dates**: November 21, February 21, May 21, and August 21
### Subscription Terms:
– **Minimum Subscription**: ₦5,000
– **Maximum Subscription**: ₦50 million
– **Subscription Increments**: Multiples of ₦1,000 after the minimum
– **Interest Payment**: Quarterly
– **Principal Repayment**: Bullet repayment on maturity date
Additional Information:
– These bonds are backed by the full faith and credit of the Federal Government of Nigeria.
– They qualify as securities under the Trustee Investment Act.
– They are recognized as government securities for tax exemption under the Company Income Tax Act and Personal Income Tax Act.
– They are listed on the Nigerian Exchange Limited and are considered liquid assets for banks’ liquidity ratio calculations.
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Investors interested in purchasing these bonds are advised to contact the appointed stockbroking firms as provided by the DMO.
