By Samuel Akpan
The Debt Management Office has launched a N2 trillion federal government bond auction, reopening four existing FGN securities for subscription on November 16, with settlement fixed for November 18.
The offer circular issued on Wednesday details the first as a N700 billion four-year reopening maturing March 2028 at 21 percent, and the second a N250 billion five-year issue due April 2029 at 19.39 percent.
The third is a N750 billion five-year reopening maturing August 2030 at 17.945 percent, while the fourth is a N300 billion nine-year bond due May 2033 carrying 19.89 percent interest.
Bonds are priced at N1,000 per unit with a minimum subscription of N50.001 million in multiples of N1,000; successful bidders pay the clearing yield-to-maturity price plus accrued interest.
Interest is paid semi-annually and principal repaid in full at maturity, with the securities qualifying as trustee investments, tax-exempt under CITA and PITA, and listed on the NGX and FMDQ.
The bonds also count as liquid assets for banks’ liquidity ratios, are backed by the full faith and credit of Nigeria, and investors must apply through approved primary dealer market makers.
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