The Debt Management Office (DMO) on Wednesday disclosed that it would open the Federal Government of Nigeria (FGN) bonds on April 27.
According to the DMO, the bonds comprise N300 billion for a five-year instrument maturing in August 2030 at 17.98 percent, N100 billion for a seven-year bond maturing in June 2032 at 17.95 percent , and N300 billion for a 10-year bond maturing in January 2035 at 22.60 percent.
The DMO discloses that the settlement date for the bonds is April 29, 2026 and that the instruments are part of the government’s strategy to finance budgetary obligations and support public expenditure.
It clarified: “Unit of sale is N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
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“The bonds are offered for subscription by auction and 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”, the DMO added.
The DMO disclosed that interest payments on the bonds would be made semi-annually, while the principal will be repaid in full on the maturity date, and that the FGN bonds were backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.
In addition, it maintained that the debt instruments qualified as government instruments under relevant tax laws and can be invested in by trustees, pension funds, and other institutional investors.
While affirming that the bonds are listed on the Nigerian Exchange (NGX) Limited and the FMDQ OTC Securities Exchange, and qualify as liquid assets for banks’ liquidity ratio calculations, the DMO urged interested investors to submit applications through authorised primary dealer market makers (PDMMs) ahead of the auction date.
