The Debt Management Office (DMO), on behalf of the Federal Government, has announced the reopening of three FGN bonds valued at N1.1 trillion for subscription in August.
The first offer is a January 2035 FGN Bond valued at N250 billion, with an interest rate of 22.60 per cent per annum.
The second is an April 2037 FGN Bond valued at N100 billion, with an interest rate of 16.2499 per cent per annum, while a June 2038 FGN Bond valued at N750 billion is offered at 15.45 per cent per annum.
The bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and multiples of N1,000 thereafter.
“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 to the DMO, interest is payable semi-annually, while principal repayment is made at maturity.
The bonds are backed by the full faith and credit of the Federal Government and are listed on the Nigerian Exchange Ltd. and the FMDQ OTC Securities Exchange.
FGN bonds are debt instruments issued by the DMO on behalf of the Federal Government, through which investors lend money to the government in return for periodic interest payments and repayment of the principal at maturity.
