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DMO announces N360bn auction for FG bonds

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The Debt Management Office announced on Tuesday the re-opening of four Federal Government of Nigeria Bonds valued at N360 billion for subscription through auction. 

The DMO provided detailed information about the offerings in a statement released in Abuja.

According to the statement, the first offer comprises a March 2027 FGN Bond valued at N90 billion, featuring an interest rate of 16.2884 per cent per annum, constituting a 10-year re-opening. 

The second offer is an April 2029 FGN Bond worth N90 billion, with an interest rate of 14.55 per cent per annum for a 10-year re-opening.

Senator John Owan Enoh, the Minister of Sports Development, expressed his satisfaction, stating, “Congratulations to the Super Eagles on your qualification to the next round of 16, having secured a win of 1-0 against Guinea-Bissau on Monday.”

Moreover, the third offer is the June 2033 FGN Bond, valued at N90 billion, carrying an interest rate of 14.70 per cent per annum as part of a 10-year re-opening. 

The fourth offer is a June 2038 FGN Bond, also valued at N90 billion, featuring a 14.43 per cent interest rate per annum and a 15-year re-opening.

The auction for these bonds is scheduled for Jan. 29, with the settlement date set for Jan. 31. DMO specified that the bonds would be offered at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, 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 statement highlighted. “Interest is payable semi-annually, while bullet repayment is on the maturity date.”

DMO emphasized the security of FGN Bonds, stating, “They qualify as securities in which trustees can invest under the Trustee Investment Act.” 

The bonds are listed on the Nigerian Exchange Ltd. and FMDQ OTC Securities Exchange, qualifying as liquid assets for liquidity ratio calculation for banks.

 

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