The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has published May 2023 FGN Savings Bond offer for subscriptions for 2-year and 3-year tenor.
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 May 2023, the DMO offers:
- 2-Year FGN Savings Bond due May 10, 2025: 10.391% per annum
- 3-Year FGN Savings Bond due May 10, 2026: 11.391% per annum
Key dates:
- Opening Date: May 1, 2023
- Closing Date: May 5, 2023
- Settlement Date: May 10, 2023
- Coupon Payment Dates: August 10, November 10, February 10, May 10
The interest rates for the May offer are slightly higher than the rates offered by the DMO in April 2023.
April 2023 rates were 10.032% per annum for 2-year and 11.032% per annum for 3-year savings bond.
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
- Visit Investogist’s homepage for more articles
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 Stock Exchange.
- 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.
