DMO auctions three N225b FGN bonds at N1,000 per unit

The Debt Management Office (DMO) has announced the listing of three Federal Government of Nigeria bonds valued at N225 billion for subscription via auction at N1,000 per unit.

The DMO made the announcement in a statement issued on Friday in Abuja.

The first offer for N75 billion had been previously issued and has a maturity date of March 2025 at an interest rate of 13.53 per cent per annum (10-year re-opening).

There is also the N75 billion bond maturing in April 2032 at an interest rate of 13.5 per cent (10-year re-opening).

The third one also is N75 billion, maturing in January 2042 at an interest rate of 13 per cent per annum (20-year re-opening).

According to the DMO, the bonds are subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“For re-opening of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus any accrued interest on the instrument.

“Interest is paid semi-annually while the bullet payment is made on maturity,’’ it stated.

The DMO added that the bonds qualify as securities in which trustees could 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.

“They are listed on The Nigerian Stock Exchange and qualify as assets for liquidity ratio calculation for banks,” it added.

“They are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country,’’ it noted.

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