FG re-opens 4 bonds worth N360bn for auction

The Debt Management Office (DMO) on Tuesday re-opened four Federal Government of Nigeria (FGN) Bonds valued at N360 billion for subscription through auction.

In a statement on Tuesday in Abuja, DMO said that the first offer was a March 2027 FGN Bond valued at N90 billion.

It said that the bond had an interest rate of 16.2884 per cent per annum (10-year re-opening).

According to DMO, the second offer is an April 2029 FGN Bond worth N90 billion with interest rate of 14.55 per cent per annum (10-year re-opening).

The third is the June 2033 FGN Bond valued at N90 billion. It has an interest rate of 14.70 per cent per annum (10-year re-opening), according to DMO.

The fourth offer is a June 2038 FGN Bond also valued at N90 billion. It has 14.43 per cent interest rate per annum (15-year re-opening), DMO said.

The auction date for the four offers is Jan. 29, while settlement date is Jan. 31, according to DMO, which added that the bonds were being 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.

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

It said that FGN Bonds were backed by the full faith and credit of the Federal Government of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it said.

DMO added that the bonds were listed on the Nigerian Exchange Ltd. and FMDQ OTC Securities Exchange and qualified as liquid assets for liquidity ratio calculation for banks.