Nigeria offers three-year bonds at 9.35% interest rate

The Debt Management Office (DMO) on Monday offered for subscription more Federal Government bonds at N1000 per unit.

According to information on its official website, DMO announced that the bonds were two-year FGN Savings Bond due in July 14, 2023, with an interest rate of 8.35 per cent per annum.

There is also a three-year FGN Savings Bond due in July 14, 2024, at a 9.35 per cent interest rate per annum.

The opening date for subscription is July 5, closing date is July 9, while coupon payment dates are July 14, October 14, January 14, April 14, July 14.

The offer comes at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1000 thereafter, subject to a maximum subscription of N50 million.

The office assured that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.

“They are listed on The Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks,” it stated.

It added that they are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.