Finance

DMO offers 2 new FGN savings bond at N1,000 per unit


The Debt Management Office (DMO) has announced that on behalf of the Federal Government, it is offering 2 new Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

The first offer is a 2-year savings bond which will be maturing on June 15, 2024, at an interest rate of 8.20% per annum.

The second one is a 3-year savings bond expected to be due on June 15, 2025, at 9.20% per annum interest rate.

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

The DMO stated that the opening date for the offer is Monday, June 6, 2022, and closes on Friday, June 10, 2022, with settlement date on June 15, and coupon payment dates on September 15, December 15, March 15 and June 15.

Other highlights of the offer

The DMO stated, “They are offered at N1,000 per unit, subject to a minimum subscription of N5000, and in multiples of N1000 thereafter, subject to a maximum subscription of N50 million.

“Interest payment will be made quarterly, while total sum invested (bullet repayment) will be made on maturity date.’’

It added that the FGN bonds qualify as securities in which trustees could invest under the Trustee Investment Act.

It stated, “They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act; for Tax Exemption and for Pension Funds, among others.’’

  • The savings bonds are listed on The Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation in banks.
  • The DMO also pointed out that the FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
  • The DMO urged interested investors to contact stock broking firms appointed as distributors or visit its website: www.dmo.gov.ng for the list of distributors.

What you should know

  • Recall that earlier in May, the DMO announced the offering of 2 more Federal Government of Nigeria (FGN) savings bonds for subscription on behalf of the federal government.
  • The first offer was a 2-year FGN savings bond which was due on May 18, 2024, at an interest rate of 7.93% per annum., while the second one was a 3-year FGN savings bond which was due on May 18, 2025, at 8.93% per annum.



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