• Saturday, June 22, 2024
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FG to raise N150bn in bond auction

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The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) on Tuesday opened bond offers for subscription by auction which will enable it raise bonds worth N150 billion across tenures.

According to the circular released by the DMO, the bond is provided with a minimum subscription of N50 million at N1000 per unit and will be available in four batches which are the N40 billion worth to be paid at 12.98 percent, N25 billion and N40 billion worth to be paid at 12.50 percent interest rate and the 45 billion worth to be paid at 9.80 percent.

The bonds are set to be auctioned on the August 19. Tenor for the bonds are set for March 2050 (30-Yr Re-opening), January 2026 (10-Yr Re-opening), March 2035 (15-Yr Re-opening), and July 2045 (25-Yr Re-opening), respectively.

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“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,” the circular states.

The bonds backed by the Federal Government are charged upon the general assets of the country.

The circular advised interested investors to contact the designated primary dealer market makers.