Saturday, February 24, 2024

Fed Govt. Offers Two Savings Bonds For February

After its successful inaugural listing for 2024, the Debt Management Office (DMO) has announced two federal government savings bonds for February 2024.

The bonds listed are up for subscription at N1,000 per unit.

According to DMO, the bonds are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

The first is a two-year FGN savings bond due on February 14, 2025, at an interest rate of 12.75 percent per annum.

FGN Savings Bonds Subscription Opens

The second, a three-year FGN savings bond at 13.75 percent per annum is scheduled to mature on February 14, 2026.

Slated dates for the opening and closure of both offers are February 4 and February 9 respectively. The settlement date is February 14, while coupon payment dates are May 14, August 14, November 14 and February 14.

“Interest is payable quarterly while bullet repayment is on the maturity date,” it announced.

DMO further assured that the FGN savings bonds, as with all other FGN securities, are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension fund amongst other investors.

“Listed in the Nigerian Stock Exchange Limited, and qualify as a liquid asset for liquidity ratio calculation for banks.”

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