Market News

By Joseph Chibueze

The Debt Management Office (DMO) has announced the offer for subscription of four Federal Government of Nigeria (FGN) bonds valued at N360 billion.
According to a statement issued by the DMO through its official X handle, the first offer is due April 2029 FGN bond valued at N90 billion, at an annual interest rate of 14.55 per cent.

The second offer is due in June 2033 FGN bond valued at N90 billion, at 14.7 per cent interest rate (10-year re-opening).
There is also the June 2038 bond valued at N90 billion at an interest rate of 15.45 per cent (15-year re-opening).

The fourth offer is a 30 year valued at N90 billion with an interest rate of 15.7 per cent per annum.

“Auction date is December 11 while the settlement date is December 13. They are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of 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,” it said.

The DMO gave the assurance that FGN bonds, like all other FGN securities, were backed by the full faith and credit of the FG and charged upon the general assets of Nigeria.

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

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

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