DMO initiates subscription for FG bonds with up to 12% interest

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FG's debt service-to-revenue ratio hits 183% in Q1 2023
FG's debt service-to-revenue ratio hits 183% in Q1 2023

The Debt Management Office (DMO) has announced the commencement of the subscription process for two-year and three-year Federal Government of Nigeria bonds for October, offering an attractive interest rate of up to 12%.

The subscription window will remain open for four days, running from October 3rd to October 6th, 2023. These bonds are scheduled to mature on October 11, 2025.

Federal bonds announced with attractive interest

In accordance with the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004, the DMO, acting on behalf of the Federal Government of Nigeria, is accepting applications for the Federal Government of Nigeria saving bonds.

The two-year bonds come with an interest rate of 11.074% per annum, while the three-year bonds offer an even more attractive interest rate of 12.074% per annum.

The settlement date for both bond offerings is set for October 11, 2023, with coupon payments slated for January 11, April 11, July 11, and October 11.

Investors can expect quarterly interest payments on these bonds.

The DMO has outlined the unit of subscription as N1,000 per unit, with a minimum subscription of N5,000 and subsequent multiples of N1,000. The maximum subscription limit is set at N50,000,000.

Interested investors are encouraged to engage with stock brokerage firms authorized by the Debt Management Office (DMO) as agents for subscription.

These bonds are traded on the NGX (Nigerian Exchange Group).