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DMO Offers 4 FGN Bonds Worth N360Bn For Subscription In March

The Debt Management Office (DMO) has offered four Federal Government of Nigeria (FGN) bonds valued at N360 billion for subscription through auction in March this year.

The DMO indicates that the first offer is a February 2028 FGN bond valued at N90 billion (10-year reopening) at an interest rate of 13.98 percent per annum while the second offer is the April 2032 FGN bond valued at N90 billion (15-year reopening) at an interest rate of 12.50 percent per annum.

The debt management agency further discloses that the third offer is the April 2037 FGN bond valued at N90 billion (20-year reopening) at the rate of 16.2499 percent per annum and that the fourth offer is the April 2049 FGN Bond valued at N90 billion (30-year reopening) at an interest rate of 14.80 percent per annum.

According to the Office, the bonds are offered at N1,000 per unit with a minimum subscription of N50 million and in multiples of N1,000 after that.

It clarified: “For reopening of previously issued bonds, successful bidders will pay the 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 added.

In line with its security assurance of such offers, the agency stated the bonds were backed by the full faith and credit of the federal government and were charged upon the general assets of Nigeria.

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

“They qualify as government securities within the meaning of the 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 a liquid asset for liquidity ratio calculation for banks”, the DMO added.

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