The Debt Management Office has announced that the Federal Government was offering three bonds worth N150bn for the September auction.
In a release, the DMO stated that the bonds, which were re-openings of previously issued instruments, would be sold in units of N1,000, subject to a minimum subscription of N50m, and in multiples of N1,000.
It was noted that the first bond being offered was the N70bn April 2029 bond with a 19.30 per cent coupon rate for a five-year tenor.
The second bond is the N50bn FGN February 2031 bond with an 18.50 per cent coupon rate for a seven-year tenor and the third bond is the N30bn FGN May 2033 bond with a 19.89 per cent coupon rate for a nine-year tenor.
According to the DMO, the bonds were auctioned on September 23, 2024, with a settlement on September 25, 2024.
It added that successful bidders would pay a price corresponding to the yield-to-maturity bid that cleared the volume being auctioned, along with any accrued interest on the bonds.
Interest on these FGN bonds is payable semi-annually, while the principal sum will be repaid in full at maturity.
It noted that the bonds were backed by the full faith and credit of the Federal Government of Nigeria and were charged upon the general assets of the country.
They qualify as securities in which trustees can invest under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act for tax exemptions for pension funds and other investors.
The bonds are also listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
“Qualifies as securities in which trustees can invest under the Trustee Investment Act. Qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for Tax Exemption for Pension Funds, amongst other investors. Listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,” it noted.
In August, the DMO offered two Federal Government savings bonds for subscription at N1,000 per unit. DMO said the first offer was a two-year FGN savings bond due on August 21, 2026, at a coupon rate of 17.373 per cent per annum.