The Federal government, through the Debt Management Office (DMO), has offered three FGN bonds valued at N150 billion each for subscription at N1,000 per unit.
According to a release by the DMO, the first offer is the five-year reopening of the April 2029 FGN bond valued at N150 billion at an interest rate of 19.30 per cent.
The second offer is the seven-year reopening of the February 2031 FGN bond valued at N150 billion, at an interest rate of 18.50 per cent.
The third offer is a new, nine-year, May 2033 FGN bond valued at N150 billion.
“Auction date is the 13, and the settlement date is May 15. They are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter,” the DMO said.
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.
The agency said that interest payments would be made semi-annually, while the bullet repayment (principal sum) is due on the maturity date.
“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.
“They 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 Exchange,” it said.
The DMO added that all FGN bonds qualify as liquid assets for banks’ liquidity ratio calculations. It urged all interested investors to contact Primary Dealer Market Makers (PDMMs) like First Bank, First City Monument Bank, Access Bank, and Citibank, among others.
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