DMO Announces FGN Savings Bonds Offering With12% Interest

Nume Ekeghe

The Debt Management Office (DMO) has offered for subscription the two-year and three-year Federal Government of Nigeria bonds for October with an interest rate of up to 12 per cent.

This announcement was made in a statement on the DMO’s official website.

The subscription period is set to last for four days, running from October 3rd to October 6th, 2023. The bonds will mature on October 11, 2025, for the two-year and three-year bonds.

Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004, the DMO on behalf of the Federal Government of Nigeria is offering these savings bonds.

The interest rate for the two-year bonds stands at 11.074 per cent per annum, while the three-year bonds offer an interest rate of 12.074 per cent per annum. The settlement date for both bond offerings is October 11, 2023, with coupon payments scheduled for January 11, April 11, July 11, and October 11. These bonds will accrue interest payments every quarter.

The DMO outlines the units of subscription as “N1,000 per unit, subject to a minimum subscription of N5,000, and subsequent multiples of N1,000, with a maximum subscription limit of N50,000,000.”