The Debt Management Office (DMO) has announced the issuance of four N90 billion bonds totaling N360 billion.
The office stated in a statement on Wednesday that there are bids for subscription by auction and that it is authorized to accept applications for a N90 billion bond.
DMO stated that the auction will begin on January 30, 2023, with a unit sale price of 41.000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 after that.
According to the office, interest is paid semi-annually, with a bullet repayment due on the maturity date.
“N90 billion with 13.98 per cent, with a 10-year reopening; N90 billion with 12.50 per cent FGN with a 15-year reopening, N90 billion with 16.2499 per cent, 20 years reopening and N90 billion with 14.80 per cent and 30 years reopening.”
“It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA), Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds and investors listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.”
“The bonds are backed by the Federal Government of Nigeria’s credit and are charged upon the general assets of Nigeria.
“For the re-openings of previously issued bonds (where the coupon is already set), successful bidders will pay the price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”