DMO opens two FGN savings bonds for subscription at N1,000 per unit

The Debt Management Office (DMO) says it has offered two federal government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit.

In a circular on its website on Monday, DMO said the issuance, which opened on April 4, would run till April 8.

A bond is a fixed income instrument (loan) made by an investor to a borrower — usually corporate or government.

The first offer is a 2-year, 7.33 percent per annum, April 2024 FGN savings bond, while the second is a 3-year, 8.33 percent per annum, April 2025 FGN savings bond.

It added that the settlement date is April 13, adding that the coupon payment date would be July 13, October 13, January 13 and April 13.

The offer comes 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.

According to DMO, interest on the bonds is payable quarterly, while bullet repayment would be on the maturity date.

The DMO said that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.