FG re-opens three bonds of 190m units for subscription at N1,000 each

The Federal Government, through the Debt Management Office (DMO), has re-opened three FGN bonds valued at N190 billion for subscription at N1,000 per unit.

According to a statement by the DMO on Wednesday in Abuja, as reported by News Agency of Nigeria, the first offer is an April 2029 FGN bond valued at N70 billion, at an interest rate of 19.30 percent per annum (5-year Reopening).

The second offer is a February 2031 FGN bond valued at N70 billion, at an interest of 18.50 percent per annum (7-year re-opening).

The third offer is May 2033 FGN valued at N50 billion, at a 19.89 percent interest rate per annum.

They are offered at N1,000 per unit, subject to a minimum subscription of N50 million, and in multiples of N1,000 after that.

The auction date is August 19, while the settlement date is August 21.

According to the DMO, for re-openings of previously issued bonds, successful bidders will pay the price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

It said that interest payment is made semi-annually, while the bullet repayment is on the maturity date.

The DMO assured that FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon Nigeria’s general assets.

“They qualify as securities where 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 for pension funds amongst other investors.

“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.