The Federal Government, through the Debt Management Office (DMO), has unveiled three Federal Government of Nigeria (FGN) bonds worth ₦450 billion for subscription by investors.
In a circular released on Monday, the DMO detailed the offerings:
- April 2029 Bond: Valued at ₦100 billion with an annual interest rate of 19.30% (5-year re-opening).
- February 2031 Bond: Worth ₦150 billion, offering an 18.50% interest rate per annum (7-year re-opening).
- January 2035 Bond: Valued at ₦200 billion (10-year re-opening).
The auction date is scheduled for January 27, while settlement will occur on January 29.
The bonds are priced at ₦1,000 per unit, with a minimum subscription requirement of ₦50 million and multiples of ₦1,000 thereafter. According to the DMO, successful bidders for re-opened bonds will pay a price aligned with the yield-to-maturity bid that clears the auctioned volume, including accrued interest.
Interest payments are semi-annual, while the principal amount is repaid in full at maturity.
The DMO highlighted the bonds’ reliability, noting that they are backed by the full faith and credit of the Federal Government and charged against Nigeria’s general assets. They qualify as investment securities under the Trustee Investment Act and are exempt from tax under the Company Income Tax Act and Personal Income Tax Act for pension funds, among others.
Additionally, the bonds are listed on the Nigerian Exchange Limited and qualify as liquid assets for calculating banks’ liquidity ratios, offering further incentives to investors.
Credit: NAN (Text Excluding Headline)
