The Debt Management Office (DMO) has announced the offering of three bonds totaling N150 billion for subscription, aimed at bolstering federal government financing.
Each bond is priced at N1, 000 per unit, with a minimum subscription threshold set at N50 million, allowing multiples of N1, 000 thereafter.
In a recent statement released by the DMO, stated that the offerings beginning with an April 2029 FGN bond valued at N70 billion, featuring an interest rate of 19.30 percent per annum in a five-year re-opening. Following this is a February 2031 FGN bond, offered at N50 billion with an interest rate of 18.50 percent per annum for a seven-year term. Lastly, the May 2033 FGN bond is available for N30 billion, offering an interest rate of 19.89 percent per annum in a nine-year re-opening.
The auction for these bonds took place on September 23, with the settlement date set for September 25. Successful bidders for previously issued bonds will be required to pay a price corresponding to the yield-to-maturity bid that clears the auctioned volume, in addition to any accrued interest.
The DMO emphasised that these bonds are backed by the full faith and credit of the Federal Government of Nigeria, charged upon the general assets of the nation. The bond qualify as securities for investment under the Trustee Investment Act, and also as government securities for tax exemptions under both the Company Income Tax Act and the Personal Income Tax Act, making them an attractive option for pension funds and other investors.
In addition to its robust backing, the bonds are listed on both the Nigerian Exchange Limited and FMDQ OTC Securities Limited, further enhancing its market accessibility. Interest payments on these bonds are made semi-annually, with the principal sum repaid in a bullet payment at maturity, making it a viable investment avenue for those looking to support the Nigerian economy while seeking potential returns.
