The Debt Management Office (DMO), has announced the offer for subscription of the June 2022 Federal Government Savings Bond to investors.
NewsBeatng reports that this disclosure was 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.
A breakdown of the bonds show that the 2-year FGN savings bond would be due on June 15, 2024, at 8.205% per annum and the 3-year FGN Savings Bond which would be due on June 15, 2025, at 9.205% per annum.
Opening Date – June 6, 2021
Closing Date – June 10, 2021
Settlement Date – June 15, 2021
Coupon Payment Dates –September 15, December 15, March 15, June 15
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.
The 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
NewsBeatng investigation revealed that a month-on-month comparison, the rates for the two tranches increase slightly, compared to the 5.522% and 6.522% offered for the 2-year FGN savings bond due April 2023, and 3-year FGN Savings bond due April 2024, respectively.
The interest rate for the latest offer is higher than the offer announced in the previous month. This could be a move to attract more investors to subscribe to the securities.
This is evidently seen in the equities market as investors sell-off their shares in order to buy into less risky assets, amid high bond yields.
The FGN Savings Bond is an investment product issued through the Debt Management Office (DMO) on behalf of the Federal Government.
