FGN October 2021 Savings Bonds open for Subscription
By Dele Ojo
The Federal Government of Nigeria, through Debt Management Office today announced the offering for subscription of the federal government of Nigeria Savings Bond.
This is in pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 Debt Management Office.
The savings bond is one of the avenues used by federal government to borrow funds from the private sector to finance governance in the country.
The Federal Government of Nigeria Savings Bond are at the following interest rates:
2-Year FGN Savings Bond due October 13, 2023: 6.899% per annum
3-Year FGN Savings Bond due October 13, 2024: 6.899% per annum
Opening Date: October 4, 2021
Closing Date: October 8, 2021
Settlement Date: October 13, 2021
Coupon Payment Dates: January 13, April 13, July 13, October 13
Summary of the Offer
Issuer:
Federal Government of Nigeria (“FGN”)
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 Payment:
Payable Quarterly
Redemption:
Bullet repayment on the maturity date
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.
Qualifies as a liquid asset for liquidity ratio calculation for banks.
Security:
It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
Interested investors are advised to contact the stockbroking firms appointed as distribution agents by the debt management office.
RECOMMENDED ARTICLES
Comment
No comments found.