FG To Auction N150bn Bonds On September 25 – DMO

The Federal Government has offered for subscription by auction N150 billion worth of bonds in its September 25, 2019 auction, the Debt Management Office (DMO) has disclosed.

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.

The offer, according to the circular obtained by DAILY INDEPENDENT from its website yesterday, stated that it would sell N45billion 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.

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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