From Uche Usim, Abuja
The Debt Management Office (DMO) on Monday called for investments in the Federal Government of Nigeria (FGN) Savings Bond with two-year tenure and three-year tenure.
The bond, DMO noted, is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country.
According to the agency, the interest payment will be payable quarterly.
The agency, in a statement, revealed that the two-year bond would be due on February 10, 2023, and attracts 4.214 per cent interest rate per annum; while the three-year bond, with February 10, 2024, as due date, has a higher rate of 5.214 per cent per annum.
The DMO added that units of sale are put at a minimum subscription of N5,000 and in multiples of N1,000 thereafter.
The statement said: ‘Investors can only apply for a maximum subscription of N50,000,000.
‘Applications opened yesterday and would close on February 5, 2021, with Settlement Date set for the 10th of this month. Coupon Payment Dates are 2021 May 10, August 10, November 10 and February 10.’
On the status of the offer, the DMO said: ‘It qualifies as securities in which trustees can invest under the Trustee Investment Act; as government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors; and qualifies as a liquid asset for liquidity ratio calculation for banks.’
