DMO opens February 2022 savings bond for subscription

The Debt Management Office (DMO), has announced the offer for subscription of the February 2022 Federal Government Savings Bond to investors.

This disclosure is contained in a circular issued by the DMO and can be seen on its website noting that there are 2-year and 3-year savings bonds, with interest rates of 7.22% and 8.22% respectively.

A breakdown of the bonds shows that the 2-year Federal Government savings bond will be due on February 16, 2024, at 7.22% per annum and the 3-year FGN Savings Bond which will be due on February 16, 2025, at 8.22% per annum.

Highlights

Opening Date – February 7th, 2022

Closing Date – February 11th, 2022

Settlement Date – February 16th, 2022

Coupon Payment Dates – May 16, August 16, November 16, and February 16

Unit 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.

A month-on-month comparison shows that the rates for the two tranches are lower compared to 7.542% and 8.542% offered for the 2-year FGN savings bond due January 19, 2024, and 3-year FGN Savings bond due January 19, 2025, respectively.

According to the disclosure, the security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

The FGN Savings Bond qualifies as securities in which trustees can invest under the Trustee Investment Act.

It also 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.

Nairametrics