The Debt Management Office at the weekend stated that the Federal Government of Nigeria’s (FGN’s) N150 billion bonds for subscription would be offered on Wednesday, June 25.
The bonds, which have the same date for settlement, comprised three bonds worth N50 billion each.
A circular issued by the DMO on the planned offer of the bonds for subscription indicated that they included a 10-year reopening bond to be offered at the rate of 16.2884 per cent with maturity date set for March 2027; a 15- year reopening bond to be offered at 12.5 per cent with maturity date of March 2035; and a 30-year reopening bond to be offered at 12.98 per cent and mature in March 2050.
According to the DMO, the bonds are “backed by the full faith and credit of the Federal Government of Nigeria”, charged upon the general assets of Nigeria and qualify as liquid assets for liquidity ratio calculation for banks.
The Office further clarified that for re-openings of previously issued bonds where the coupon is already set, successful bidders would pay a price corresponding to the yield to maturity bid that cleared the volume being auctioned, plus any accrued interests on the instrument.