The Debt Management Office (DMO), has offered three FGN bonds valued at N150 billion for subscription at N1,000 per unit.
A statement issued by the DMO on Monday announced that the first offer was an April 2029 FGN bond valued at N70 billion at an interest rate of 19.30 per cent per annum (five-year) re-opening.
The second offer is a February 2031 FGN bond valued at N50 billion, at an interest rate of 18.50 per cent per annum (seven-year re-opening)
There is also the May 2033 FGN bond valued at N30 billion, at 19.89 interest rate per annum (nine-year re-opening)
According to the DMO, the FGN bonds were offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples N1,000 thereafter.
The DMO stated that 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 auction date is September 23, while the settlement date is September 25.
“Interest is payable semi-annually, and bullet repayment (principal sum) is done at maturity,” it said.
It said that FGN bonds were backed by the full faith and credit of the Federal Government of Nigeria, and were charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee 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 amongst other investors.
“They are listed on the Nigerian Exchange Limited and FMDQ OTC securities Limited,” the DMO said.