The Debt Management Office on Wednesday announced that the Federal Government would auction by subscription bonds worth N70 billion on December 19.
Specifically, the Officer in a circular hosted on its website stated that the five-year re-opening bonds of N20 billion, which would mature in April 2023, was offered at 12.75 per cent.
In addition, it stated that the seven-year re-opening bonds of N15 billion, to mature in March 2025, would be auctioned at 13.53 per cent while the 10-year re-opening bonds of N35 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.
According to the DMO, the unit price of the bonds is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
The Federal Government bonds as debt instruments are backed by the full faith and credit of the Federal Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.
The government issues sovereign bonds monthly to support the local bond market, so as create a benchmark for corporate issuance and fund federal budget deficit.
