Aduragbemi Omiyale
By Aduragbemi Omiyale
The Debt Management Office (DMO) has asked interested retail investors to purchase two tenors of the FGN savings bonds for March 2023.
Subscriptions for the notes opened on Monday, March 6 and will close on Friday, March 10.
The first is the 2-year FGN savings bond due March 15, 2025, being offered at a coupon rate of 9.465 per annum, and the second is the 3-year FGN savings bond due March 15, 2026, offered at a coupon rate of 10.465 per cent per annum.
The minimum subscription for the tax-free papers is N5,000, subject to a maximum subscription of N50 million.
The settlement date, according to a notice from the debt office, is Wednesday, March 15, 2023, while the coupon payment dates are June 15, September 15, December 15, and March 15.
The bonds can be purchased through any of the licenced brokerage companies in the country.
The FGN savings bond is a debt instrument issued by the Nigerian government and is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
It can be used as a liquid asset for liquidity ratio calculation for banks and qualifies as securities in which trustees can invest under the Trustee Investment Act.
