Two Federal Government of Nigeria (FGN) bonds have been offered for subscription in October at N1,000 per unit.
A Debt Management Office (DMO) statement said the first offer is a two-year FGN savings bond due on Oct. 16, 2026, at an interest rate of 17.084 per cent per annum.
The second offer is a three-year FGN savings bond due on October 16, 2027, at an interest rate of 18.084 per cent per annum.
The opening date for the offers is October 7, with the closing date set for October 11 and, the settlement date October 16, while coupon payment dates are January 16, April 16, July 16 and October 16.
“They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
“Interest is payable quarterly, while bullet repayment (principal sum) is on the maturity date,” DMO said.
The DMO also said that the savings bonds, like all other FGN securities were backed by the full faith and credit of the Federal Government.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.
“They are listed on the Nigerian Exchange Limited, and qualify as liquid assets for liquidity ratio calculation for banks,’’ it said. (NAN)