DMO Offers 2 Year FGN Savings Bond at 17.373% and 3 Year Bond at 18.373%

The Debt Management Office (DMO) has offered two Federal Government of Nigeria (FGN) savings bonds for subscription at ₦1,000 per unit.

According to a statement by the DMO on Monday in Abuja, the first offer is a two-year FGN savings bond due on August 21, 2026, at an interest rate of 17.373% per annum.

The second offer is a three-year FGN savings bond due on August 21, 2027, at an interest rate of 18.373% per annum.

The Opening date for the offer is August 12, the closing date is August 16, and the settlement date is August 21, while coupon settlement dates are November 21, February 21, May 21, and August 21.

“They are offered at ₦1,000 per unit subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, subject to a maximum subscription of ₦50 million.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity date” the DMO said.

It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.

“They qualify as securities in which 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.

“They are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.”