The Debt Management Office (DMO), on behalf of the Federal Government has announced the offer for subscription of the November 2021 Federal Government Savings Bond to investors.
This disclosure is 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 shows that the 2-year FGN savings bond will be due on November 10, 2023, at 7.376% per annum and the 3-year FGN Savings Bond which will be due on November 10, 2024, at 8.376% per annum.
- Opening Date – November 1st, 2021
- Closing Date – November 5th, 2021
- Settlement Date – November 10th, 2021
- Coupon Payment Dates – February 10, May 10, August 10, and November 10
- Unit 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
A month-on-month comparison shows that the rates for the two tranches are higher compared to 6.899% and 7.899% offered for the 2-year FGN savings bond due October 13, 2023, and 3-year FGN Savings bond due October 13, 2024, respectively.
What you should know
According to the disclosure, the security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
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.