DMO Offers Two FGN Bonds For Subscription In Sept

DMO Offers Two FGN Bonds For Subscription In Sept
The Debt Management Office (DMO) on Monday opened for subscriptions two-year and three-year tenure of Federal Government of Nigeria (FGN) bonds at 11.031 per cent and 12.031 per cent respectively per annum.
A circular by the Office notifying the public on the offers  posted on its website indicated that the offers of subscription would last from 4th – 8th of September 2023, and that the two-year bond would be due on September 13, 2025 and September 13, 2026 for the three-year bond.
The DMO stated: “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds.”
On the interest rates and tenures of the bonds, the Office clarified that the interest rate for the two-year tenure would be at 11.031 per cent per annum while that of the three-year tenure would be 12.031 per cent.
Similarly, the Office states that the settlement date for both offers  is September 13, 2023, and the coupon payment dates are December 13, March 13, June 13, and September 13, adding that the interests on the bonds are paid quarterly.
According to the DMO, the units of subscription are “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.
It advised interested investors to contact stock brokerage firms listed as agents by it and that the bonds which are listed on the NGX are backed by the Federal Government of Nigeria.

Online Editor

Leave a Reply

Your email address will not be published. Required fields are marked *