Director-General of the DMO Patience Oniha
DMO offers October 2021 FGN savings bond for subscription
The Debt Management Office (DMO), has announced on behalf of the Federal Government of Nigeria, the offer for the subscription of the October 2021 Federal Government Savings Bond to investors.
This is according to a recent circular issued by the DMO which can be seen on its website. The circular notes that the bonds are in two tranches, which are 2-year and 3-year saving bonds.
A breakdown of the bonds shows that the 2-year FGN savings bond will be due on the 13th October 2023 at the rate of 6.899% per annum and the 3-year FGN savings bond will be due on the same date in 2024 at 7.899% per annum.
Highlights :
Opening Date – 4th October 2021.
Closing Date – 8th October 2021.
Settlement Date -13th October 2021.
Coupon payment dates – January 13, April 13, July 13, and October 13.
Unit of Sale – N 1,000 per unit subject to a minimum subscription of N 5,000 and in multiples of N 1,000 thereafter, subject to a maximum subscription of N 50,000,000.
A month-on-month comparison shows that the rates been offered for the two tranches are lower compared to 7.915% and 8.915% offered for the 2-year FGN savings bond due on the 15th of September 2023 and 3-year FGN savings bond due on the 15th of September 2024 respectively.
According to the disclosure, the security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
It also qualifies as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, for amongst other investors. (Nairamatrics)
