CEM REPORT, FINANCE | The Debt Management Office (DMO) has announced the re-opening of four Federal Government of Nigeria (FGN) Bonds for a subscription.
The four bonds are all valued at N90 billion respectively, totalling N360 billion will be purchased through a primary market auction window.
The DMO in a statement said the bonds are offered at N1,000 per unit with a minimum subscription of N50 million, and in multiples of N1,000 thereafter.
The bonds are a 13.98 per cent, February 2028 FGN Bond; a 12.50 per cent, April 2032 FGN Bond; a 16.25 per cent, April 2037 FGN Bond; and a 14.80 per cent , April 2049 FGN Bond.
The DMO noted that 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.
It added that the interest payment is done semi-annually while the bullet repayment (principal sum) is done on the maturity date.
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It said 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 Nigeria.
It further stated that they qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds amongst other investors,” the DMO said.