Debt Management Office reopens ₦360 billion FGN bonds for subscription

In a statement on Tuesday in Abuja, DMO said that the first offer was a March 2027 FGN Bond valued at ₦90 billion. It said that the bond had an interest rate of 16.2884% per annum (10-year re-opening).

According to DMO, the second offer is an April 2029 FGN Bond worth ₦90 billion with an interest rate of 14.55% per annum (10-year re-opening). The third is the June 2033 FGN Bond valued at ₦90 billion. It has an interest rate of 14.70% per annum (10-year re-opening), according to DMO.

The fourth offer is a June 2038 FGN Bond also valued at ₦90 billion. It has a 14.43% interest rate per annum (15-year re-opening), DMO said.

The auction date for the four offers is January 29, while the settlement date is January 31, according to DMO, which added that the bonds were being offered at ₦1,000 per unit subject to a minimum subscription of ₦50 million and in multiples of ₦1,000 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 is payable semi-annually, while bullet repayment is on the maturity date,’’ it noted.

It said that FGN Bonds were backed by the full faith and credit of the Federal Government of Nigeria.

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

DMO added that the bonds were listed on the Nigerian Exchange Ltd. & FMDQ OTC Securities Exchange and qualified as liquid assets for liquidity ratio calculation for banks.