DMO Auctions N225bn FGN Bonds At N1,000 Per Unit

The Debt Management Office has offered three new federal government of Nigeria (FGN) bonds valued at N225 billion for subscription by auction.

The agency explained that the bonds are valued at N1,000 with a minimum subscription of N50 million, and in multiples of 1,000 units thereafter.

Prime Business Africa gathered that the auction date is fixed for April 25, while successful bidders have an April 27 deadline to pay up.

The DMO said the bonds are valued at N75 billion each.

The first N75 billion bond would have a 13.53 percent interest rate, due in March 2025 with a 10-year reopening.

The second bond would be due in April 2032 (10-year new issue) while the third is also at 13 percent interest, due in January 2042 (20-year reopening).

The agency said: “For re-opening 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.

“The bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption, pension fund amongst other investors.

“They are listed on The Nigerian Stock Exchange Ltd. and FMDQ OTC Securities Exchange.”

The debt management agency said all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks.

It added that all the bonds are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.