DMO Offers FG Bonds Valued N225bn for Subscription

The Nigerian Debt Management Office (DMO) says it has offered three Federal Government Bonds for subscription, valued at N225 billion.

This was revealed in a circular on the DMO’s office website .

The bonds include; 14.55 per cent, April 2029 FGN Bond, a 12.50 per cent, April 2032 FGN Bond and a 16.24 per cent, April 2037 FGN Bond.

The Debt office said the bonds opening date for the auction is slated for Oct.17 and the settlement date is Oct.19, with original tenors of 10 years, 10 years and 20 years.

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The office explained that “The bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million , and in multiples of N1,000 thereafter.”

“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,” the DMO added.

They are qualified as assets for liquidity ratio calculation for banks, therefore, listed on NGX Limited and FMDQ OTC Securities Exchange.

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

DMO added that the successful bidders would pay a price corresponding to the yield-to-maturity bid, plus accrued interest on the instrument, as well as reopening previously issued bonds.