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DMO Auctions Four FGN Bonds Valued At N360 Billion

On Tuesday, the Debt Management Office (DMO) announced the offer for subscription of four federal government bonds valued at N360 billion through auction.

According to a statement issued by the DMO, the first offer is an April 2029 FGN bond valued at N90 billion at an interest rate of 14.55 per cent per annum (10-year reopening).

The second offer is a June 2033 FGN bond valued at N90 billion, at a 14.70 per cent interest rate per annum (10-year reopening).

There is also the June 2038 FGN bond valued at N90 billion, at an interest rate of 15.45 per cent per annum (15-year reopening).

The fourth offer is a June 2053 FGN bond valued at N90 billion, with an interest rate of 15.70 per cent per annum (30-year reopening).

“Auction date is December 11 and settlement date is December 13. They are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“For reopenings 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,” the DMO said.

The DMO said interest on the FGN bond was paid semi-annually while the bullet repayment was on the maturity date.

The DMO assured that FGN bonds, like all other FGN securities, were backed by the “full faith and credit of the federal government and charged upon the general assets” of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act. Qualify as government securities within the meaning of the Company IncomeTax Act and Personal Income Tax Act for tax exemption for pension funds, among others,” the DMO explained.

It added, “They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.”


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