THERE are expectations that stop rates will moderate due to increased demand as the Central Bank of Nigeria (CBN) refinances Treasury-bills worth N56.91 billion that will mature via the primary market.
Market information show that the maturities are viz: 90-day bills worth N1.55 billion, 182-day bills worth N1.46 billion, and 364-day bills worth N53.90 billion.
In another development, the Debt Management Office (DMO) has announced its first bonds issuance for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.
A statement by the DMO says “One is a two-year FGN Savings Bond due in January 11, 2025, at the interest rate of 9.600 percent per annum. The other is a three-year FGN Savings Bond due in January 11, 2026, at the interest rate of 10.600 percent per annum.”
The DMO said the bond opened on January 3 and closed January 6 and settlement date, January 11, while coupon payment dates would be April 11, July 11, October 11 and January 11.
It said, “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.”
The DMO said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
It said, “They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds.
“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks.”
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