DMO Offers Three Bonds Worth N150bn for Subscription

Ndubuisi Francis in Abuja

The Debt Management Office (DMO) has offered three bonds valued at N150 billion for subscription at N1,000 per unit on behalf of the federal government.

In a statement issued yesterday, the debt management agency disclosed that the first offer was an April 2029 FGN bond valued at N70 billion at an interest rate of 19.30 percent per annum (five-year) re-opening.

The second offer, it said, was a February 2031 FGN bond valued at N50 billion, at an interest rate of 18.50 per cent per annum (seven-year re-opening).

The May 2033 FGN bond valued at N30 billion, at 19.89 interest rate per annum (nine-year re-opening) is also on offer

The bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples N1,000 thereafter.

For re-openings 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 on the instrument, the DMO stated, adding that, “auction date is September 23, while the settlement date is September 25.”

It further disclosed that interest is payable semi-annually and bullet repayment (principal sum) is done at maturity.

According to the statement, the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.

It said: “They qualify as securities in which trustees can invest under the Trustee Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Limited.”