The Debt Management Office (DMO) has re-opened three Federal Government of Nigeria (FGN) Bonds valued at N225 billion for subscription, for the month of October.
According to a statement by the DMO, the bonds are a 14.55 per cent, April 2029 FGN Bond, a 12.50 per cent, April 2032 FGN Bond and a 16.24 per cent, April 2037 FGN Bond.
The bonds have original tenors of 10 years, 10 years and 20 years, respectively. Opening date for the auction is October 17, while the settlement date is October 19.
The DMO said: “The bonds are offered at N1,000 per unit subject to a minimum subscription of N50million, and in multiples of N1,000 thereafter.“
“Interest is payable semi-annually while the bullet payment is made on maturity,’’
The Office added that they qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act; and for Tax Exemption for Pension Funds Administrators, among other investors,” the DMO added.
The bonds are listed on The Nigerian Stock Exchange Limited (NGX) and FMDQ OTC Securities Exchange, and they qualify as assets for liquidity ratio calculation for banks.
“They are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country,’’ it said.
Re-opened bonds have the same maturity date and interest rate as the original bonds, but they are sold on different dates and usually at a different price.
According to the DMO, for re-opening of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid plus accrued interest on the instrument.
#DMO Re-Opens N225bn FGN Bonds, Subscription Begins October 17#