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The Debt Management Office (DMO), on behalf of the Federal Government, has announced an offer of three FGN bonds valued at N1.1 trillion for subscription at N1,000 per unit.
According to a statement by the DMO on Thursday in Abuja the first offer is January 2035 FGN Bond valued at N250 billion (10-year re-opening), at interest rate of 22.60 per cent per annum.
The second offer is an April 2037 FGN bond valued at N100 billion (20-year re-opening), at interest rate 16.2499 per cent per annum.
The Federal Government also re-opened a June 2038 FGN bond valued at N750billion (15-year re-opening), at interest rate of 15.45 per cent per annum.
“Auction date is Aug. 17, and the settlement date is Aug. 19.
“The FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
“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.”
According DMO, interest is payable semi-annually, while bullet repayment is on the maturity date.
It said that FGN bonds, like all other Federal Government securities, were backed by the full faith and credit of the Federal Government and charged upon the general assets 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 the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, amongst other investors.
“They are listed on the Nigerian Exchange Ltd., and the FMDQ OTC Securities Exchange, and they qualify as liquid assets for liquidity ratio calculation for banks, ” it said.
The News Agency of…
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Read Full Article by Bala Augie at moneycentral.com.ng
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