FG offers 3 bonds valued at ₦300bn for subscription
According to the DMO, 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.
The Debt Management Office (DMO) is offering three Federal Government of Nigeria (FGN) bonds valued at ₦300 billion for subscription at ₦1,000 per unit.
According to the DMO, the first offer is an April 2029 FGN bond valued at ₦100 billion, at interest an rate of 19.30 per cent per annum (five-year re-opening).
The second offer is a February 2031 FGN valued at ₦100 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 ₦100 billion, at a 19.88 per cent interest rate per annum (nine-year re-opening).
They are offered at ₦1,000 per unit subject to a minimum subscription of ₦50 million and in multiples of ₦1,000 thereafter.
“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date,” the DMO said.
It said that for the re-opening of previously issued bonds, successful bidders would pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.
According to the DMO, 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 the 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.
It said that all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks.
