Patience Oniha, Director-General, Debt Management Office.
The Debt Management Office (DMO) on Friday offered for auction, two separate Federal Government of Nigeria (FGN) bonds at N75 billion each.
The DMO in its website, announced that the bonds are N75 billion, 10-year re-opening FGN bonds at 12.5 per cent interest rate and another N75 billion, 20-year re-opening FGN bond at 13 per cent interest rate.
The bonds go for N1, 000 per unit with a minimum subscription of N50 million and in multiples of N1, 000 afterwards.
Auction date for the bonds is Feb. 16, while the settlement date is Feb. 22.
“For re-opening of previously issued bonds, 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,” the DMO explained.
It stated that interest on the bonds would be payable “semi-annually ” while “bullet payments would be made on maturity date.
The DMO assured that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act.
and Personal Income Tax Act for Tax Exemption for Pension Funds, among other investors.
“They are listed on the Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.”
It added that the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country
Source NAN
