DMO re-opens, auctions 4 FGN bonds valued at N360bn in March offer


Abuja, March 14, 2022 The Debt Management Office (DMO) on Tuesday offered four Federal Government of Nigeria (FGN) Bonds valued at N360 billion for subscription through auction.

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According to the DMO, the first offer is a February 2028 FGN Bond valued at N90 billion (10-year re-opening), at interest rate of 13.98 per cent per annum.

The second offer is April 2032 FGN Bond valued at N90 billion (15-year re-opening), at interest rate of 12.50 per cent per annum.

There is also the April 2037 FGN Bond valued at N90 billion (20-year re-opening), at the rate.16.2499 per cent per annum.

The fourth offer is April 2049 FGN Bond valued at N90 billion (30-year reopening), at interest rate of 14.80 per cent per annum.

According to the DMO, the Bonds are offered at N1,000 per unit with a minimum subscription of N50 million, and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, 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 is done semi-annually while the bullet repayment (principal sum) is done on the maturity date, ” the DMO said.

It said that the bonds were backed by the full faith and credit of the Federal Government of Nigeria, and were charged upon the general assets of the Nigeria.

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

“They qualify 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.

“They are listed on the Nigerian Stock Exchange Limited and FMDQ OTC Securities Exchange.

“All FGN Bonds qualify as liquid asset for liquidity ratio calculation for banks,” it said.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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