Connect with us


Business and Brands

FG offers N150 billion bonds on auction

FG offers N150 billion bonds on auction

Published

on

he Debt Management Office (DMO) has issued two separate Federal Government of Nigeria (FGN) bonds for auction at N75 billion each.

The DMO in its website, on Friday announced that the bonds are N75 billion, 10-year re-opening FGN bonds at 12.5 per cent interest rate and another N75 billion, 20-year re-opening FGN bond at 13 per cent interest rate.

Advertisement

The bonds go for N1, 000 per unit with a minimum subscription of N50 million and in multiples of N1, 000 afterwards.

Auction date for the bonds is February 16, while the settlement date is February 22.

Advertisement
READ ALSO:   Polaris Bank Partners EAS, Funds Training of over 1000 Nigerian SMEs on Export to US, Europe

“For re-opening of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus any accrued interest on the instrument,” the DMO explained.

It stated that interest on the bonds would be payable “semi-annually ” while “bullet payments would be made on maturity date.

Advertisement

The DMO assured that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act.

Advertisement

 

and Personal Income Tax Act for Tax Exemption for Pension Funds, among other investors.

Advertisement
READ ALSO:   Sterling’s Unify To Digitize Nigerian Higher Education with Africa EDUCare

“They are listed on the Nigerian Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks.”

It added that the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.

Advertisement

(NAN)

Advertisement
Advertisement

Also Read...