Finance

FG to auction N150bn bonds on Sept. 25 — DMO

The Federal Government has offered for subscription by auction N150 billion worth of bonds in its  Sept. 25 auction, the Debt Management Office (DMO) said.

The offer circular obtained from its website on Tuesday in Abuja, stated that it would sell N45 billion of a five year re-opening issue maturing in April 2023 at 12.75 per cent.

It would also sell N50 billion 10 year re-opening bond to mature in April 2029 at 14.55 per cent, and another N55 billion 30 year re-opening at 14.80 per cent to mature in April 2049.

According to DMO, units of sale is N1, 000 per unit, subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.

The DMO explained that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

 

 

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