DMO issues 2 savings bonds with high interest yields

The Debt Management Office (DMO), has issued two new savings bonds payable after two and three years with an interest rate of 12.492 per cent and 13.492%, respectively. The DMO in a statement yesterday stated that offers for subscription of the bonds would start on November 7 and will close by 11 while settlement date […]

The Debt Management Office (DMO), has issued two new savings bonds payable after two and three years with an interest rate of 12.492 per cent and 13.492%, respectively.

The DMO in a statement yesterday stated that offers for subscription of the bonds would start on November 7 and will close by 11 while settlement date is on 16th with coupon payment dates slated for; February 16, May 16, August 16, November 16.

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It stated that the bond can be purchased with 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. 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.”

While stating that it is payable quarterly, redemption would be a bullet repayment on the maturity date.

It assured investors that it is backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

It urged interested investors to contact stockbroking firms appointed as distribution agents by DMO.