The Federal Government, through the Debt Management Office (DMO), has issued three FGN bonds worth N150 billion for subscription at N1,000 each.
According to a DMO statement issued on Monday, the initial offer is an April 2029 FGN bond valued at N70 billion with a re-opening interest rate of 19.30 percent per year (five years).
The second sale is a February 2031 FGN bond worth N50 billion with an annual interest rate of 18.50 percent (re-opening after seven years). There is also the May 2033 FGN bond priced at N30 billion, at 19.89 percent per year (nine-year re-opening).
According to the DMO, the FGN bonds are sold for N1,000 per unit, with a minimum subscription of N50 million and in multiples N1, 000 thereafter.
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 on the instrument.
“Auction date is Sep. 23, while settlement date is Sept. 25.
“Interest is payable semi-annually, and bullet repayment (principal sum) is done maturity,” it said.
It said that 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.
“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 Limited,” the DMO said.
It said that FGN bond are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.
