Finance

FG to auction N150bn bonds in June

The Debt Management Office has disclosed that the Federal Government will offer N150bn bonds for subscription in June.

A circular by the DMO obtained from its website on Friday showed that the breakdown of the bonds comprised of three bonds worth N50bn each.

They are 10-year reopening bond to be offered at the rate of 16.2884 per cent and to mature in March 2027; a 15- year reopening bond to be offered at 12.5 per cent with maturity date of March 2035; and a 30-year reopening bond to be offered at 12.98 per cent and mature in March 2050.

According to the DMO, the bonds will be auctioned on June 23. They also have the same date for settlement.

For re-openings of previously issued bonds, (where the coupon is already set), successful bidders would pay a price corresponding to the yield to maturity bid that cleared the volume being auctioned, plus any accrued interests on the instrument, the DMO stated.

It added that all FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.

The FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria, the DMO stated.

It would be recalled that in May, the DMO offered similar bonds of N150bn bonds for subscription which comprised on three bonds worth N50bn each.

They were 10-year reopening bond offered at the rate of 16.2884 per cent and to mature in March 2027; 15- year reopening bond offered at 12.5 per cent and mature in March 2035; and a 30-year reopening bond offered at 14.8 per cent and maturing in April 2045.

Related posts

World Bank: Direct subsidies on oil, gas, coal cost govts $1.25tn annually  

Editor

Cash limits: PoS operators give CBN ultimatum  

Editor

Ex-CBN Director tasks FG on ailing refineries

Our Reporter

FEC approves Finance Bill 2020 to support 2021 Budget

Aliyu  DANLADI 

Pencil producer urges MDAs, Nigerians to encourage local manufacturers  

Editor

Forex transactions at investors, exporters’ window rise 59.37%

Our Reporter