By Aduragbemi Omiyale
The Federal Government of Nigeria (FGN) savings bond sales for April 2024 is closing today, Friday, April 4, after opening on Monday, April 1, according to a circular from the Debt Management Office (DMO).
The retail bonds are sold by the DMO for the federal government to retail investors not earning much but want to take part in capital market investments.
The paper is offered in two tenors of two years and three years at a coupon rate of 17.046 per cent and 18.046 per cent, respectively.
The minimum subscription for the notes is N5,000 at N1,000 per unit and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
The interest will be paid four times a year on every July 9, October 9, January 9, and April 9, until maturity, when the initial investment sum would be paid by the Nigerian government.
The FGN savings bond is backed by the full faith and credit of the Nigerian government and charged upon the general assets of the country.
The paper qualifies as securities in which trustees can invest under the Trustee Investment Act, and 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.
It can be used as a liquid asset for liquidity ratio calculation for banks, and is listed on the Nigerian Exchange (NGX) Limited for trading at the secondary market.
The retail bond can be purchased by interest persons through brokerage companies chosen as distribution agents by the debt office.