DMO opens N1tn FGN bond subscription, sets N50m minimum

n n

The Debt Management Office has announced an offer of two Federal Government of Nigeria bonds valued at N1tn for subscription at N1,000 per unit.

n

The DMO, in a statement on Monday, said the first offer was a new 10-year FGN bond valued at N400bn and due in September 2036.

n

The second was a N600bn reopening of a 15-year FGN bond due in 2038, with a coupon rate of 15.45 per cent per annum.

n

The offer opened on September 14, while the settlement date is September 16.

n

“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,” the DMO said.

n

It added that for reopenings of previously issued bonds, where the coupon is already set, successful bidders would pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest.

n

“Interest is payable semi-annually, while bullet repayment is on the maturity date,” the DMO said.

n

The office said the bonds, like other Federal Government securities, were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

n

It added that the securities qualified as investments for trustees under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act for relevant tax exemptions.

n

The DMO said the bonds were listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange and qualified as liquid assets for liquidity ratio calculations for banks.

n

FGN bonds are fixed-income debt securities issued by the DMO on behalf of the Federal Government. They enable investors to lend money to the government, with proceeds used to finance government spending, including infrastructure and other public projects.

n

NAN

n n