• Friday, March 29, 2024
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Nigeria offers additional N150bn bonds for subscription in February

Bonds

The Debt Management Office (DMO) has announced plans to offer for subscription additional three Federal Government bonds worth N150 billion to investors for February 2019.

The issuance of the debt securities comes after DMO ended its February auction, Friday, on two-year and three-year savings bonds expected to mature on Feb 13, 2021 and 2022 at 12.05 percent and 13.05 percent interest rates per annum, respectively.

According to DMO, which offers the fixed-income instruments on behalf of the Federal Government of Nigeria (FGN), the additional bonds offering valued at N50 billion each comprise 12.75 percent FGN April 2023 for five-year re-opening, 13.53 percent FGN March 2025 for seven-year re-opening, and 13.95 percent FGN February 2028 for ten-year re-opening.
The securities will be auctioned on Wednesday, Feb. 20 and have a settlement date of February 22, according to a recent circular by the DMO.

“For 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,” DMO said.

The debt office further assured that 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 with semi-annual coupon payments to bondholders and bullet repayment on the maturity date.