The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has published July 2022 FGN Savings Bond offer for subscription for 2-year and 3-year tenor.
The rates offered for July are 0.13% lower than the rates offered in June 2022 for both the 2-year and 3-year bonds. Nevertheless, July rates are higher than the rates offered in May.
The 2-year savings bond rates dropped to 8.075% per annum in July from 8.205% in June while the 3-year savings bond rate fell to 9.075% from 9.205% in June.
The rates in May were 7.934% and 8.934% for 2-year and 3-year savings bonds respectively.
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.
The DMO offers:
2-Year FGN Savings Bond due July 13, 2024: 8.075% per annum
3-Year FGN Savings Bond due July13, 2025: 9.075% per annum
Opening Date: July 4, 2022
Closing Date: July 8,, 2022
Settlement Date: July 13, 2022
Coupon Payment Dates: October 13, January 13, April 13, July 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
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The interests are payable quarterly, with a bullet repayment of the principal on maturity date.
- 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.