The Debt Management Office (DMO) on Monday put on offer the Federal Government’s N150 billion bonds for subscription for the month of July.
According to the DMO, the offer was in three tranches of N50 billion each.
The first is a 10-year reopening bond offered at the rate of 13.98 percent with a maturity date of February 2028.
The second tranche of N50 billion with 12.40 percent rate has March 2036 (20 years) as maturity, while the third tranche of N50 billion with 12. 98 percent rate (30-year re-opening) has March 2050 maturity.
The Debt Management Office indicated that the auctioning of the bonds would be Monday, July 19, 2021, with a settlement date of Friday, July 23, 2021.
The circular stated that transactions would be at N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
The DMO clarified: “For re-openings of previously issued bonds, (where the coupon is already set), 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.”