The Debt Management Office (DMO) has disclosed the Federal Government’s to secure domestic borrowing between January and March 2022.
The borrowing which comes as a form of bond, according to the DMO, is fully backed by all assets of the country.
In a press release cited by BizWatch Nigeria, the issuance for the quarter under review will be held on Wednesday, January 19, Wednesday, February 16, and Wednesday, March 2022 23.
The breakdown of the calendar shows that the agency would be issuing a new FGN bond in January 2042 with a maturity tenor of 20 years.
12.5% FGB Bond 2026 and a new issue of a 20-year FGB Jan 2042 bond will be issued on the 19th of January 2022.
Similarly, in the next month, the 12.5% FGN Jan 2026 will be issued on 16th February 2022, alongside the FGN Jan 2042 20-year bond.
Also, on 23rd March 2022, the 12.5% FGN Jan 2026 bond will be reopened together with the FGN Jan 2042 20-year bond.
What you should know about bonds
As defined by Investopedia, the bond is a fixed-income instrument that represents a loan made by an investor to the government. In this case, the Nigerian government intends to leverage this financial instrument to fund its operations, and give interest accrued from the investment to borrowers.
When you buy bonds, you are lending to the federal government for a specified period of time.
Allaying fears from interested parties, the DMO assured that the bonds have no default risk, which means it is absolutely certain your interest and principal would be paid as and when due.
It is, however, pertinent to note that the interest income earned from the securities are tax exempt.
