Nigerian govt presents 2 bonds valued at N120bn for subscription — Every day Nigerian
The Federal Government, by way of the Debt Management Office, DMO, has supplied two FGN bonds valued at N120 billion for subscription by way of public sale.
According to an announcement by the DMO on Monday in Abuja, the primary supply is an April 2029 FGN bond valued at N60 billion, at an rate of interest of 19.30 per cent every year (five-year re-opening).
The second supply is a February 2031 FGN bond, valued at N60 billion at an rate of interest of 18.50 per cent every year (seven-year re-opening).
“Auction date Dec. 16, and settlement date is Dec. 18.
“The bonds are supplied at N1, 000 per unit topic to a minimal subscription of N50 million and in multiples of N1, 000 thereafter.
“Interest is payable semi-annually, while the bullet repayment is on the maturity date,” the DMO stated.
It stated that for re-openings of beforehand issued bonds, profitable bidders would pay a worth comparable to the yield-to-maturity that clears the quantity being auctioned plus any accrued curiosity.
According to the DMO, FGN bonds are backed by the complete religion and credit score of the Federal Government, and are charged upon the overall property of Nigeria.
“They qualify as securities by which trustees can make investments underneath the Trustee Investment Act.
“They qualify as authorities securities throughout the that means of Company Income Tax Act and Personal Income Tax for tax exemption for pension funds amongst different buyers.
“All FGN bonds qualify as liquid assets for liquidity ratio calculation for banks,” it stated
It stated that they’re listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
NAN
