DMO Re-open 3 Bonds Worth N450bn

Date:

June 20, 2024.

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Azonuchechi Chukwu.

The Debt Management Office (DMO), on Thursday announced a re-opening of three FGN savings bonds worth N450 billion for subscription by auction.

Announcing the offer in Abuja, the DMO said that the bonds were offered at N1, 000 per unit subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.

The first offer, as announced by the DMO, is an April 2029 FGN bond valued N150 billion, at an interest rate of 19.30 per cent per annum. (Five-year re-opening)

The second offer is a February 2031 FGN bond worth N150 billion at 19.50 per cent interest rate per annum. (Seven-year re-opening)

There is also the May 2033 FGN bond worth N150 billion at an interest rate of 19.89 per cent per annum. (nine-year re-opening)

According to the DMO, the auction date is June 14, while the settlement date is June 26.

It said that interest was payable semi-annually while bullet repayment (principal sum) would be made on maturity date.

“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,” It said.

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

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

“They qualify as government securities within the meaning of 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 ODC Securities Exchange,” the DMO said.

It also said that FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.

The News Agency of Nigeria (NAN) reports that the N450 billion FGN bond offer constitutes the local component of the government borrowing plan, to bridge the nine trillion Naira deficit in the 2024 budget.(NAN)

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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