Finance

DMO offers September savings bonds for subscription

Fed Govt offers new savings bonds

The Debt Management Office has opened the September savings bond offer to investors.

The DMO said this in a circular on Monday that it is offering the Federal Government’s two-year and three-year savings bonds.

The circular posted on its website was titled ‘FG savings bond offer for subscription September,2021’.

According to the circular, the two-year FGN savings bond will be due for redemption on September 15, 2023 at 7.915 per cent per annum, while the three-year offer will be due on September 15, 2024 at 8.915 per cent per annum.

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The offer opened on Monday, with a closing date of September 10.

While the settlement date is September 15, the bonds have coupon payment dates of December15, March 15, June 15, September 15, according to the circular.

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The units of sale are N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription ofN50,000,000.

The interest rate is payable quarterly with bullet repayment expected on the maturity date.

According to the circular, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act, and as a liquid asset for liquidity ratio calculation for banks.

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Listed on the Nigerian Stock Exchange, the bonds also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds.

Punch

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