DMO re-opens 2 FGN bonds valued at N200bn for subscription

The Debt Management Office (DMO) on Thursday re-opened FGN bonds valued at N200 billion for subscription in July.

According to a statement by the DMO, the first offer is an August 2030 FGN bond valued at N100 billion, at interest rate of 17.945 per cent (5-year re-opening).

The second offer is a June 2032 FGN bond, also valued at N100 billion, at interest rate of 17.95 per cent (7-year re-opening)

“Auction date is Sept. 29, while settlement date is Oct, 2.

“They 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.

It said that for re-opening if previously issued bonds, successful bidders would pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus and accrued interest.

“Interest is payable semi-annually, and bullet repayment (principal sum) us on maturity,” it said.

The DMO said that FGN bonds, like all other Federal Government securities, are backed by the full faith of the Federal Government, and are charged upon the general assets of Nigeria.

“They also qualify as securities in which trustees can invest under the Trustee Investment Act.

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

“They are listed on the Nigerian Exchange Limited (NGX) and qualify as a liquid asset for liquidity ratio calculations for banks,” it said.