The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the availability of three FGN bonds valued at N150 billion for subscription at N1,000 per unit.
According to a statement by the DMO on Monday, the first offer is an April 2029 FGN bond valued at N70 billion with an interest rate of 19.30 per cent per annum (five-year re-opening).
The second offer is a February 2031 FGN bond valued at N50 billion, with an interest rate of 18.50 per cent per annum (seven-year re-opening).
Additionally, there is a May 2033 FGN bond valued at N30 billion, with a 19.89 per cent interest rate per annum (nine-year re-opening).
The DMO stated, “The FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.” 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 September 23, while settlement date is September 25. Interest is payable semi-annually, and bullet repayment (principal sum) is done at maturity,” the DMO added.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon Nigeria’s general assets.
“They qualify as securities in which trustees can invest under the Trustee Investment Act,” the DMO noted.
They also “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.”
The bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Limited.
