The Debt Management Office on Monday opened subscriptions for the November 2018 savings bond of the Federal Government of Nigeria (FGN).
The bond subscription period, according to the debt office, will run from Monday, November 5 to 12 noon of Friday, November 9, 2018, with the settlement date fixed for Wednesday, November 14, 2018.
The debt office is offering two tenors; 2-year FGN Savings Bond due November 14, 2020 at 12.390 percent per annum and 3-year FGN Savings Bond due November 14, 2021 at 13.390 percent per annum.
The DMO said it will accept subscriptions of N1,000 per unit subject to a minimum of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
The FGN Savings Bonds have most of the features of the existing FGN Bond plus other benefits to the bondholder.
They are backed by the full faith of the Federal Government of Nigeria and is therefore deemed risk free, with interest paid quarterly.
The bonds qualify as securities in which trustees can invest under the Trustee Investment Act as well 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.
They FGN Savings Bonds are also listed on the Nigerian Stock Exchange (NSE) and qualify as a liquid asset for liquidity ratio calculation for banks.
American Airlines raises second-quarter forecast for key revenue metric
Insurers get a new global accounting regime
Nigeria's central bank to auction N117bn treasury bills Nov 30
Secured credit availability to households increased in Q1 2018 – CBN survey
Nigerian tech start-ups received 81% of venture capital funding in Africa in 2016
UK FRC fines KPMG £3.2m over failed Quindelll audit
T-bills rate seen rising on rollover of maturities
C & I Leasing lists N7bn fixed rate bond on FMDQ
Balance of payment vulnerable to shocks as CBN spends $4.2bn in 6 months on FX marketof
MTN partners Sterling Bank on smartphone financing scheme