DMO Issues Fresh N360bn Bond

The Debt Management Office (DMO) has announced the issuance of four bonds of N90bn each.

In a statement yesterday, the office said there are offers for subscription by auction and that it is authorised to receive applications for “N90bn with 13.98%, with a 10-year reopening; N90bn with 12.50% FGN with a 15-year reopening, N90bn with16.2499%, 20 years reopening and N90bn with 14.80% and 30 years reopening.”

It added that the auction date is January 30, 2023, while the settlement date is February 1, 2023, with a unit sale of 41.000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

“For the re-openings of previously issued bonds, (where the coupon is already set), 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.”

It added that the bond qualifies as securities in which trustees can invest under the Trustee Investment Act.

“It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds amongst other investors as well as listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.”

It said all federal government bonds qualify as liquid assets for liquidity ratio calculation for banks.

“The bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.”

It said the interest payment is payable semi-annually and bullet repayment on the maturity date.