After raising N5.63tr from bonds, FG offers two more for subscription

After borrowing an estimated N5.63 trillion from local investors through the FGN Bond market in the first 11 months of 2024, the federal government through the Debt Management Office (DMO), has opened offers for subscription to two Federal Government of Nigeria (FGN) savings bonds for December 2024 at an interest rate of 17.48 per cent and 18.48 per cent respectively. This is the last for 2024.

The DMO in a statement on Monday in Abuja, said the first offer is a two-year FGN savings bond due on December 11, 2026 at an interest rate of 17.483 per cent per annum.

The second offer is a three-year FGN savings bond due on December 11, 2027, at an interest rate of 18.483 per cent per annum.

The opening date for the offer is December 2, 2024, the closing date is December 6, 2024, and the settlement date is December 11, 2024, while coupon settlement dates are March 11, June 11, September 11 and December 11.

“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 date,” the DMO said.

It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

The debt management office also added that they are listed on the Nigerian Exchange Limited, and qualify as liquid assets for liquidity ratio calculation for banks.

Investors have shown strong demands for FGN bonds in recent times which analysts attribute to attractive yields, which offer investors high returns on their investments.