The Debt Management Office on Tuesday announced that the Federal Government will auction N150bn worth of bonds by subscription on June 17.
A circular by the DMO on Tuesday showed that a N40bn five-year reopening bond maturing in April 2023 would be offered at 12.75 per cent; a N50bn 15-year reopening bond maturing in March 2035 would be auctioned at 12.50 per cent; while N60bn 30-year reopening bond maturing in March 2050 would be auctioned at 14.8 per cent.
Units of Sale:
N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
Interest Rate:
For Re-openings of previously issued bonds, (where the coupon is already set), 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 Payment:
Interest is payable semi-annually
Redemption:
Bullet repayment on the maturity date
Status:
The status of the bond offer includes the following:
- Qualifies as securities in which trustees can invest under the Trustee Investment Act.
- Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors.
- Listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.
- All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.
Security:
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.