The Debt Management Office (DMO) has announced the listing of two Federal Government of Nigeria (FGN) Savings Bonds for subscription at N1,000 per unit.
According to the DMO, the first offer is a two-year FGN Savings Bond due on March 11, 2028, with an interest rate of 12.906 per cent per annum.
The second offer is a three-year FGN Savings Bond due on March 11, 2029, at an interest rate of 13.906 per cent per annum.
The subscription window opens on March 2 and closes on March 6, with settlement scheduled for March 11. Coupon payments will be made quarterly on June 11, September 11, December 11 and March 11.
The DMO stated that FGN bonds are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria.
It added that the bonds qualify as approved securities under the Trustee Investment Act and are recognised as government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemption for pension funds and certain other investors.
The bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.
According to the DMO, all FGN bonds also qualify as liquid assets for banks in calculating their liquidity ratio.