DMO re-opens four FGN bonds valued at N360bn for subscription

By Seun Ibiyemi

The Debt Management Office (DMO), has listed four Federal Government of Nigeria (FGN) bonds valued at N360 billion for subscription at N1,000 per unit.

The first offer is a February 2028 FGN Bond valued at N90 billion, at interest rate of 13.98 per cent per annum (10-year re-opening).

The second offer is an April 2032 FGN Bond, valued at N90 billion, with an interest rate of 12.50 per cent per annum (10-year re-opening).

There is also the Jan 2042 FGN Bond valued at N90 billion, with an interest rate of 13.00 per cent per annum (20-yearre-opening).

The fourth offer is the March 2042 FGN Bond, also valued at N90 billion, at an interest rate of 12.98 per cent per annum.

Auction date is April 17, and settlement date is April 19.

“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.

“Interest is payable semi-annually, while bullet payment is made on maturity,” the DMO said.

It said that FGN Bonds were backed by the full faith and credit of Nigeria.

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

“They qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds among other investors,” it said.

According to DMO, the bonds are listed on the Nigerian Stock Exchange Limited and FMDQ Securities Exchange Limited.

“All FGN Bonds qualify as liquid asset for liquidity ratio calculation for banks,” it said.