The Debt Management Office (DMO) has announced its December issuance of two savings bonds at N1,000 per unit.

According to the DMO, the first offer is a two-year savings bond due on December 14, 2025, at an interest rate of 12.255 per cent per annum.

The second is a three-year savings bond due on December 14, 2025, at a 13.255 per cent interest rate per annum.

It said the opening date for the issuance of the bonds was December 5, and the closing date would be December 9, with a settlement date of December 14.

DMO added that the coupon payment dates would be March 14, June 14, September 14 and December 14.

“They are issued 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,” DMO announced in a statement. “Interest is payable quarterly, while bullet repayment is made on the maturity date.”

According to the DMO, the savings bonds qualify as securities that trustees can invest under the Trustee 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 amongst other investors,” stated the DMO. “They are listed on the Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks.”

It added that they were backed by the full faith and credit of the federal government and charged upon the general assets of the country. 

(NAN)