The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has published December 2023 FGN Savings Bond offer for subscriptions for 2-year and 3-year tenor as interest rates continue to decline.
FGN Savings Bond is backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.
For December 2023, the DMO offers:
- 2-Year FGN Savings Bond due December 13, 2025: 12.287% per annum
- 3-Year FGN Savings Bond due December 13, 2026: 13.287% per annum
The December rates are 0.177% lower than the rates offered in November – 12.464% per annum and 13.464% per annum for 2-year and 3-year tenor respectively.
However, December rates were 1.213% higher than the rates offered in October – 11.074% per annum and 12.074% per annum for 2-year and 3-year tenor respectively.
Key dates:
- Opening Date: December 4, 2023
- Closing Date: December 8, 2023
- Settlement Date: December 13, 2023
- Coupon Payment Dates: March 13, June 13, September 13, December 13
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.
- Read: List of Dividends announced in 2023, qualification and payment dates
- List of Dividends announced in 2022, qualification and payment dates
- List of Dividends announced in 2021, qualification and payment dates
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The interests are payable quarterly, with a bullet repayment of the principal on maturity date.
Bond Status:
- 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 Exchange Limited.
- All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.
Interested investors should contact offices of any of the following Primary Dealer Market Makers (PDMMs): Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Ltd, Stanbic IBTC Bank Plc.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
