Federal Govt. to auction N115 billion bonds

The Debt Management Office (DMO) says the Federal Government is to auction by subscription N115 billion worth of bonds.

The DMO said in a circular on its website in Abuja, that the five-year bonds of N35 billion to mature in April 2023 was offered at 12.75 per cent.

The seven-year bonds, also of N35 billion, is to mature in March 2025 and would be auctioned at 13.53 per cent.

The circular added that the 10-year bonds of N45 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.

According to the DMO, units of sale is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

The bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on the maturity date.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.