Welcome To 2023: DMO Announces First FG Borrowing Of The Year

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Welcome To 2023: DMO Announces First FG Borrowing Of The Year
Welcome To 2023: DMO Announces First FG Borrowing Of The Year

The Debt Management Office (DMO) on Monday announced the issuance of its first bonds for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.

A bond is loan from an investor to a borrower such as a company or government. The borrower uses the money to fund its operations, and the investor receives interest on the investment.

DMO in a statement announcing the new bond said one is a two-year FGN Savings Bond due in Jan. 11, 2025, at the interest rate of 9.600 percent per annum.

The other is a three-year FGN Savings Bond due in Jan 11, 2026, at the interest rate of 10.600 percent per annum.

The DMO said that the opening date would be Jan. 3, while the closing date would be Jan. 6, and settlement date, Jan. 11, while coupon payment dates would be April 11, July 11, Oct. 11and Jan. 11.

DMO offer reads: “They are offered at 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 million.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity.”

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The DMO also said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.

It added: “They also 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.

“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.”

DMO also noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.