By Tony Obiechina, Abuja
The Debt management Office (DMO) has called for investments in the Federal Government of Nigeria (FGN) Savings Bond with two-year tenure and three-year tenure.
According to the DMO the two-year bond would be due on Feb. 10, 2023 would attract an interest rate of 4.214 per cent per annum.
The three-year bond, with Feb.10, 2024 as due date, has a higher rate of 5.214 per cent per annum.
Units of sale are put at a minimum subsc ription of N5,000 and in multiples of N1,000 thereafter. Investors can only apply for a maximum subscription of N50, 000,000, according to the agency.
Applications which opened on Monday, will 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 agency 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 calculation for banks.”
The bond, DMO added, is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
The Office added that interest payment will be payable quarterly.
