Festus Akanbi

The Debt Management Office (DMO) has offered three new Federal Government of Nigeria (FGN) bonds valued at N225 billion for subscription through auction in April.

They are a N75 billion FGN bond at 13.5 per cent interest rate, due in March 2025 (10 year re-opening) and a N75 billion FGN bond, due in April 2032 (10 year new issue).

A statement by DMO said the third one is a N75 billion bond at 13 per cent interest rate, due in January 2042 (20 year re-opening).

The bonds are valued at N1,000 with a minimum subscription of N50 million, and in multiples of 1000 units thereafter.

Auction date is April 25, while successful bidders have April 27 deadline to pay up.

“For re-opening of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest.

“The bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption, pension fund amongst other investors.

“They are listed on The Nigerian Stock Exchange Ltd. and FMDQ OTC Securities Exchange,’’ the DMO stated.

It added that all FGN bonds qualify as liquid asset for liquidity ratio calculation for banks.

“FGN bonds are backed by the full faith and credit of the FGN and are charged upon the general assets of Nigeria,’’ the statement added.