Ms. Patience Oniha, DG, DMO

Adebayo Obajemu

The Debt Management Office on Tuesday announced that the Federal Government will auction N150bn worth of bonds by subscription on June 17.

A circular by the DMO on Tuesday showed that a N40bn five-year reopening bond maturing in April 2023 would be offered at 12.75 per cent; a N50bn 15-year reopening bond maturing in March 2035 would be auctioned at 12.50 per cent; while N60bn 30-year reopening bond maturing in March 2050 would be auctioned at 14.8 per cent.

Units of Sale:

N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

Interest Rate:

For Re-openings of previously issued bonds, (where the coupon is already set), 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 Payment:

Interest is payable semi-annually

Redemption:

Bullet repayment on the maturity date

Status:

The status of the bond offer includes the following:

Qualifies as securities in which trustees can invest under the Trustee Investment Act.Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors.Listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.

Security:

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