March 2020 FGN Savings Bonds Offer for Subscription

Monday, March 02, 2020  / 11:42 AM / DMO / Header Image Credit: Business Finance

Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 Debt Management Office on behalf of the Federal Government of Nigeria Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria Savings Bond at the following interest rates

2-Year FGN Savings Bond due March  11, 2022: 4.131% per annum

3-Year FGN Savings Bond due March  11, 2023: 5.131%  per annum

Opening Date:                                  March 2, 2020

Closing Date:                                    March 6, 2020

Settlement Date:                              March 11, 2020

Coupon Payment Dates:                 June 11, September 11, December 11, March 11

Summary of the Offer 

Issuer 

Federal Government of Nigeria ("FGN")

Units of Sale 

N1,000 per unit subject to a minimum Subscription of N5,000 and in mul4iples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

Interest Payment 

Payable Quarterly

Redemption 

Bullet repayment on the maturity date

Status 

1.       Qualifies as securities in which trustees can invest under the Trustee Investment Act.

2.   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.

3.      Listed on The Nigerian Stock Exchange.

4.      Qualifies as a liquid asset for liquidity ratio calculation for banks.

Security 

Backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.  

Interested investors should contact the stockbroking firms appointed as distribution agents by the debt management office.

Related News

1. OMO AUCTION: CBN Drops Rate Across all Tenors, with the 362-DTM Closing at 13.00%
2. Another Positive Outcome for the DMO At the February 2020 Auction
3. The Bulls Still Out in the T-Bills Market as DMO Drops Rates
4. DMO Request for EOI for the Appointment of the Transaction Parties for the Issuance of FGN Eurobonds
5. Treasury Bill Auction Holds On Wednesday Feb 26th, 2020
6. Coronation Merchant Bank Commercial Paper Issuance Series V and VI Now Open
7. Anchoria Fixed Income Monitor: CBN Regulates Customer's Deposit in Domiciliary Account
8. NT-Bills Average Yield Up 7bps WoW to 3.9%; Coronation MB CP Available
9. OMO Yields Drop Further in the T-Bills Market as the Long-dated Maturities Trade below 12% Levels
10. Nigeria Has A Good Chance To Boost Its Reserves And Prevent Devaluation In 2020 - Coronation MB
11. February 2020 FGN Bond Auction Oversubscribed
12. Summary of FGN Bond Auction Results For February 2020
13. DMO Sell N100bn at the Bond Auction as Rates Drop to a 5-Month Low