Finance

FG to auction N150bn bonds in October

The Debt Management Office said on Tuesday that the Federal Government will offer N150bn bonds for subscription in October.

A circular by the DMO on its website showed that the breakdown of bonds consisted of three bonds worth N50bn each.

They are 10-year re-opening bond to be offered at the rate of 12.50 per cent and mature in January 2026; a 20-year reopening bond to be offered at 16.2499 per cent and mature in April 2037; 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, which will be auctioned on October 20, have a settlement date of October 22.

The units of sale are N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

According to the circular, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act, and as a liquid asset for liquidity ratio calculation for banks.

The bonds also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for Tax Exemption for Pension Funds amongst other investors.

They qualify to be listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.

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