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DMO Introduces Two New FGN Savings Bonds

The Debt Management Office (DMO) has announced the availability of two new Federal Government of Nigeria (FGN) Savings Bonds for subscription, each priced at N1,000 per unit.

The initial offering consists of a two-year FGN Savings Bond with a maturity date of August 16, 2025, offering an attractive interest rate of 9.634% per annum. The subsequent offering is a three-year FGN Savings Bond due on August 16, 2026, with an even more appealing interest rate of 10.634% per annum.

Interested investors are required to subscribe with a minimum of N5,000, and thereafter in increments of N1,000, with an upper subscription limit set at N50 million.

The subscription window will open on August 7 and close on August 11. Successful subscribers will have settlement on August 16. Coupon payments are scheduled for November 16, February 16, May 16, and August 16.

The interest on these bonds will be paid out quarterly, while the repayment of the principal sum (bullet repayment) will be made upon maturity.

It is important to note that FGN Savings Bonds are recognized as securities suitable for investment under the Trustee Investment Act. They also enjoy the status of government securities within the framework of the Company Income Tax Act and Personal Income Tax Act, which translates to tax exemption benefits for pension funds and other investors.

Additionally, these bonds qualify as liquid assets when calculating liquidity ratios for banks.

The FGN Savings Bond is listed on the Nigerian Exchange Limited and is fully backed by the unwavering faith and credit of the FGN. Its security is further solidified by being charged against Nigeria’s general assets.

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