DMO reopens four FGN Bonds valued at N360 billion

The Debt Management Office (DMO) has re-opened four Federal Government of Nigeria (FGN) Bonds valued at N360 billion for subscription through a primary market auction window.

According to a statement issued by the DMO on Tuesday, the bonds are a 13.98 per cent, February 2028 FGN Bond; a 12.50 per cent, April 2032 FGN Bond; a 16.25 per cent, April 2037 FGN Bond; and a 14.80 per cent , April 2049 FGN Bond.

The four bonds are all valued at N90 billion, totalling N360 billion.

According to the debt management office, the bonds are offered at N1,000 per unit with 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,” the DMO said.

The interest payment is done semi-annually while the bullet repayment (principal sum) is done on the maturity date, the DMO said.

It said that the bonds were backed by the full faith and credit of the Federal Government of Nigeria, and were charged upon the general assets of Nigeria.

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It further stated that they qualify as securities in which trustees can invest under the Trustee Investment Act.

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

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

“All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks,” it said. DMO Reopens N360 Billion FGN Bonds for Subscription,” it said.