DMO has opened an offer for FGN Savings Bonds for March at 16.09%.
NewsOnline Nigeria reports that the Debt Management Office (DMO) has initiated the subscription process for two-year and three-year Federal Government of Nigeria bonds for March 2024 with an interest rate of up to 16.097%.
This announcement was made in a statement on the DMO’s official website. The subscription period is set to last for five days, running from March 4th to March 8th, 2024.
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Details of the offers
The two-year Federal Government of Nigeria (FGN) savings bond, maturing on March 13, 2026, carries an annual interest rate of 15.097%.
The three-year Federal Government of Nigeria (FGN) savings bond, set to mature on March 13, 2027, offers an annual interest rate of 16.097%.
The Debt Management Office (DMO) announces that the issue will open on March 4 and close on March 8, with the settlement date on March 13. Interest payments are scheduled for June 13, September 13, December 13, and March 13 each year.
- Statement from the DMO, “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds.”
Unit of subscription
The DMO outlines the units of subscription as “N1,000 per unit, subject to a minimum subscription of N5,000, and subsequent multiples of N1,000, with a maximum subscription limit of N50,000,000.”
How to participate
Prospective investors are invited to reach out to securities brokerage companies recognized as authorized agents by the Debt Management Office (DMO). These bonds are available for trading on the Nigerian Exchange Group (NGX).
Federal Government of Nigeria (FGN) savings bonds are recognized as suitable investment vehicles for trustees as per the Trustee Investment Act.
Furthermore, as government securities, they qualify for tax exemption for pension funds under the provisions of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA).
