The Federal Government, by means of the Debt Management Office, DMO, has provided three FGN bonds for subscription by traders.
The DMO, in its supply round on Monday, mentioned that the primary supply was an April 2029 FGN bond, valued at N100 billion at an rate of interest of 19.30 per cent every year. (5-year re-opening)
It listed the second supply as a February 2031 FGN bond valued at N150 billion, at rate of interest of 18.50 per cent every year. (7-year re-opening)
The third supply is a January 2035 FGN bond, valued at N200 billion. (10-year re-opening)
Auction date is Jan. 27, and settlement date is Jan. 29.
According to the DMO, the FGN bonds are provided at N1,000 per unit topic to a minimal subscription of N50 million, and in multiples of N1,000 thereafter.
“For re-openings of beforehand issued bonds, profitable bidders can pay a worth similar to the yield-to-maturity bid that clears the amount being auctioned, plus any accrued curiosity on the instrument.
“Interest is payable semi-annually, while bullet repayment (principa sum) is on the maturity date, ” the DMO mentioned.
It mentioned that the bonds have been backed by the total religion and credit score of the Federal Government, and have been charged upon the overall property of Nigeria.
“They qualify as securities wherein trustees can make investments below the Trustee Investment Act.
“They qualify as authorities securities throughout the which means of Company Income Tax Act and Personal revenue Tax Act for tax exemption for pension funds amongst others.
“They are listed on the Nigeria Exchange Limited, ” it mentioned.
It mentioned that they certified as liquid property for liquidity ratio calculations for banks,” it mentioned.
NAN