The Debt Management Office (DMO) has made an announcement, revealing the offering for subscription of four Federal Government of Nigeria (FGN) bonds amounting to N360 billion.
These offerings comprise various bonds with specific maturity dates and interest rates:
- April 2029 FGN Bond: Valued at N90 billion, carrying an annual interest rate of 14.55 percent.
- June 2033 FGN Bond (10-year re-opening): Also valued at N90 billion, with a 14.7 percent interest rate.
- June 2038 FGN Bond (15-year re-opening): Valued at N90 billion and offering an interest rate of 15.45 percent.
- 30-Year Bond: Worth N90 billion, presenting an interest rate of 15.7 percent per annum.
The DMO specified the auction date as December 11, with the settlement scheduled for December 13. These bonds will be available at N1,000 per unit, with a minimum subscription set at N50 million and in multiples of N1,000 thereafter.
For previously issued bond re-openings, successful bidders are to pay a price aligned with the yield-to-maturity bid plus any accrued interest.
The DMO assured investors that these FGN bonds, like other FGN securities, are backed by the full faith and credit of the FG and secured against Nigeria’s general assets. They also qualify as trustee investments under the Trustees Investment Act and government securities for tax exemption under the Company Income Tax Act and Personal Income Tax Act, particularly for pension funds.
Furthermore, these FGN bonds are listed on both the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
