Abuja, Nigeria: The Debt Management Office (DMO) has reopened two Federal Government of Nigeria (FGN) bonds valued at ₦200 billion, inviting investors to subscribe as part of efforts to deepen the domestic debt market and fund national development.
According to a statement by the DMO, the first offer is an August 2030 FGN bond valued at N100 billion, at an interest rate of 17.945% (5-year reopening).
The second offer is a June 2032 FGN bond, also valued at N100 billion, at an interest rate of 17.95 per cent (7-year reopening).
“Auction date is Sept 29, while settlement date is Oct 2. “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 stated that for reopening previously issued bonds, successful bidders would pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest.
“Interest is payable semi-annually, and bullet repayment (principal sum) is on maturity,” it said.
The DMO stated that FGN bonds, like all other Federal Government securities, are backed by the full faith and credit of the Federal Government and are charged against the general assets of Nigeria.
“They also 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 and pension funds, amongst other investors.
“They are listed on the Nigerian Exchange Limited (NGX) and qualify as a liquid asset for liquidity ratio calculations for banks,” it said.