Nigeria’s Debt Management Office (DMO) Monday offer for public subscription two and three-year savings bonds at 12 and 13 percent interest rate respectively.
The offer for the two-year FGN Savings Bond due October 18, 2019 at 12.059 percent per annum closes October 9, 2017. On the other hand the three-year bonds due October 18, 2020 at 13.059 percent per annum would close October 13, 2017.
The savings bonds at N1,000 per unit are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
The DMO said interest payment would be payable quarterly with bullet repayment on the maturity date.
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The savings 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 are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.
The bonds are highly secured as they are backed by the full faith and credit of the
Federal Government of Nigeria and charged upon the general assets of Nigeria.