The Debt Management Office (DMO), has announced the offer for subscription three Federal Government Bonds (FGN Bonds), valued at N150 billion at N1,000 per unit.
The Debt Management Office (DMO) has announced the offer for subscription, Federal Government Bonds (FGN Bonds), valued at N150 billion.
A statement released by debt office noted that the first offer will be in April 2029 FGN bond valued at N70 billion at an interest rate of 19.30 per cent per annum (five-year) re-opening.
While the second offer is a February 2031 FGN bond valued at N50 billion, at an interest rate of 18.50 per cent per annum (seven-year re-opening)
There is also the May 2033 FGN bond valued at N30 billion, at 19.89 interest rate per annum (nine-year re-opening)
The statement further said the FGN bonds are offered at N1, 000 per unit subject to a minimum subscription of N50million and in multiples N1, 000 thereafter.
It said that for re-openings 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.
“Auction date is Sep. 23, while settlement date is Sept. 25.
“Interest is payable semi-annually, and bullet repayment (principal sum) is done maturity,” it said.
It said that FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria, and are charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act.
“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
“They are listed on the Nigerian Exchange Limited and FMDQ OTC securities Limited.”
