Buhari’s Borrowings: DMO lists two new FG savings bonds
The Debt Management Office (DMO) has offered two new federal government bonds for subscriptions.
The first, a two-year savings bond, came at an interest rate of 7.33 per cent per annum and will be due on April 13, 2024.
There is also a three-year savings bond at an interest rate of 8.33 per cent per annum, due on April 13, 2025.
According to the DMO announcement on its official website, the opening date for the bonds’ sale is April 4, the closing date is April 8, and the settlement date is April 13.
The coupon payment date will be July 13, October 13, January 13 and April 13.
The offer came at N1,000 per unit subject to a minimum subscription of N5,000 and multiples of N1,000 after that, subject to a maximum subscription of N50 million.
Interest on the bonds is payable quarterly, while bullet repayment will be on the maturity date.
The DMO added that the bonds qualified as securities for trustees to invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) and for Tax Exemption for Pension Funds, among other investors,” it explained. “They are listed on the Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.”
It added that they are backed by the full faith and credit of the federal government and charged upon the general assets of the country.
A bond is a fixed-income instrument representing a loan made by an investor to a borrower.
(NAN)
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