The Federal Government of Nigeria, FGN March 2021 Savings Bond is up for subscriptions through the Debt Management Office (DMO).
The DMO has the authority of the FG to receive applications on its behalf with the following interests rates:
- 5.181% per annum – 2 years FGB Savings Bond due March 10, 2023
- 6.181% per annum – 3 years FGN Savings Bond due March 10, 2024
The offers has a time limit and schedule as follows:
- Opening Date: March 1, 2021
- Closing Date: March 5, 2021
- Settlement Date: March 10, 2021
- Coupon Payment Dates: June 10, September 10, December, and March 10
Summary of the FGN savings bond offer
Issuer: Federal Government of Nigeria (FGN)
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Units of sale: N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
Interest is payable quarterly and bullet repayment on the maturity date is enabled.
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The announcement by the DMO further states that the following status for this offers
- Qualifies as securities in which trustees can invest under the Trustee Investment Act.
- 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, amongst other investors.
- Listed on The Nigerian Stock Exchange.
- Qualifies as a liquid asset for liquidity ratio calculation for banks.
The DMO shared the file on its website where it also informs investors who are interested to contact the stockbroking firm appointed as distribution agents by the DMO office. A list of distributing agents is available on its website https://www.dmo.gov.ng/.