The Debt Management Office (DMO), on behalf of the Federal Government, has announced an offer of two FGN bonds valued at N1 trillion for subscription at N1,000 per unit.
According to a statement by the DMO on Monday in Abuja, the first offer is a new 10-year FGN bond due in September 2036, valued at N400 billion.
The second offer is a 15-year reopening of an existing FGN bond due in 2038, valued at N600 billion, with an interest rate of 15.45 per cent per annum.
The opening date for the offer is Sept. 14, while the settlement date is Sept. 16.
“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.
“Interest is payable semi-annually, while bullet repayment is on the maturity date,” the DMO said.
The DMO said FGN bonds, like other Federal Government securities, are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
It added that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange Ltd. and FMDQ OTC Securities Exchange and qualify as liquid assets for liquidity ratio calculations for banks.
FGN bonds are fixed-income debt securities issued by the DMO on behalf of the Federal Government. They enable investors to lend money to the government to finance infrastructure, public projects and national budget deficits.
