January 24, 2024.Thank you for reading this post, don't forget to subscribe!
The Debt Management Office (DMO) has announced the first FGN bond auction of 2024.
According to the announcement seen by Nairametrics, the auction is set for January 29, 2024, with the settlement date being January 31, 2024.
Details of the offer
The bond offerings are:
N90 billion of the reopened 10-year 16.2884% FGN MAR 2027 bond
N90 billion of the reopened 10-year 14.55% FGN APR 2029 bond
N90 billion of the reopened 10-year 14.70% FGN JUN 2033 bond
N90 billion of the reopened 15-year 15.45% FGN JUN 2038 bond
The bonds are offered at a unit price of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are made semi-annually (twice a year).
The FGN bonds meet the criteria outlined in the Trustee Investment Act, allowing trustees to invest in them. Additionally, they qualify as Government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), ensuring they are tax-exempt for Pension Funds and other investors.
After the bonds are auctioned in the primary market to the primary dealer market makers, the bonds are then listed on both the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, which are the secondary markets.(www.naija247news.com).