Debt Management Office (DMO) has called for subscriptions for four N90bn savings bonds.

The DMO, in a statement yesterday, stated that it is receiving the subscription by auction and called for applications of 1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

It described the four bonds as N90bn with 13.98 per cent interest and 10 years reopening. This is followed by “a N90bn bond which has a 12.50 per cent and would be reopened after 15 years; 20 years N90bn with 16.2499 per cent interest and N90bn with 14.80 per cent interest of 30-year reopening.”

It said the auction date is March 20, 2023, while the settlement date would be on March 22, 2023 and interest payment is semi-annually.

“For re-openings of previously issued bonds, where the coupon is already set, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”

It added that the bond qualifies as securities in which trustees can invest under the Trustee Investment Act.

“It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds amongst other investors.

Daily Trust