FG floats 2-3 Yrs savings bonds at 5.5%, 6.5% yield

FG floats 2-3 Yrs savings bonds at 5.5%, 6.5% rates

The Debt Management Office (DMO) has called on application for subscription into the federal government’s Savings Bond.

In a statement on its website, DMO said the bond will be held by subscribers for two and three years and would yield 5.522 per cent and 6.522 per cent per annum respectively.

It stated that the opening date is on April 6, 2021 which opened today. The offer will close on April 9, 2021, while the settlement date is April 14, 2021 and the coupon payment date will be July 14, October.

It added that investors can get a N1000 per unit subject to a minimum subscription of N5000 and subject to a maximum subscription of N50 million

“The bonds qualities as securities in which trustees can invest under the Trustee Investment Act, as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, amongst other investors,” it stated.

It said the bonds would be listed on the Nigerian Stock Exchange and qualified as a liquid asset for liquidity ratio calculation for banks and interest is paid quarterly.

While urging interested investors to contact stockbroking firms appointed as distributor agents of DMO.

It said the bonds are “backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.”