Demand to moderate bond’s stop rates as DMO issues bonds worth N360bn

THERE are expectations that bond’s stop rates will moderate amid robust demand as the Debt Management Office (DMO) is poised to issue bonds worth N360 billion, encompassing various maturities.

These include the 10-year, 14.55 percent Federal Government of Nigeria (FGN) April 2029 (10-Yr Re-opening) valued at N90 billion, the 10-year, and 14.70 percent FGN June 2033 (10-Yr Re-Opening) worth N90 billion, the 20-year, 15.45 percent FGN June 2038 (20-Year Re-Opening) worth N90 billion, and the 30-year, 15.70 percent FGN April 2053 (30-Yr Re-Opening) worth N90 billion, respectively.

According to the DMO, for re-openings of previously issued bonds (where the coupon is already set), bidders will pay the price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus any accrued interest on the instrument.

It stated that interest is payable semi-annually while the bullet repayment (principal sum) will be made on the maturity date.

DMO assured that FGN bonds are backed by full faith and credit of the FGN and are charged upon the general assets of Nigeria.

“All FGN bonds qualify as liquid assets for liquidity ratio calculation for banks,” it said.

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