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FG to auction N150b bonds

Ms. Patience Oniha, DG, DMO
Ms. Patience Oniha, DG, DMO

The Federal Government will be auctioning N150 billion bonds on January  30, Debt Management Office (DMO) has disclosed.
In a circular posted on its website, the DMO said that the five-year re-opening bonds of N50 billion to mature in April 2023 would be offered at 12.75 per cent.
It said that the seven-year re-opening bonds also of N50 billion to mature in March 2025 would be auctioned at 13.53 per cent.
It added that the 10-year bonds of N50 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.
According to the DMO, the bonds will be sold at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
The DMO explained that the bonds were backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.