Categories: Business and Brands

FG offers N150 billion bonds on auction

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

“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

“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
Ayoola Olaitan

Recent Posts

Dele Farotimi released from Ekiti correctional centre

Human rights advocate Dele Farotimi has been released from the Ekiti State correctional facility after…

6 hours ago

Breaking: Ibadan Stampede: Court Orders Remand Of Ooni’s Ex-Wife, School Principal

A Chief Magistrate in Ibadan, Olabisi Ogunkanmi, has ordered the remand of Prophetess Naomi Silekunola, the…

6 hours ago

Nkechi Blessing gets engaged to younger lover, Xxssive [VIDEO]

Popular Nollywood actress, Nkechi Blessing has finally got engaged to her younger lover, Xxssive. This…

8 hours ago

GOAT: Who said Messi is better than me – Cristiano Ronaldo

Al Nassr captain, Cristiano Ronaldo, has jokingly reacted to a Lionel Messi taunt as he…

8 hours ago

Regina Daniels reveals the best way to predict one’s future as she shares more photos from her vacation

Popular Nollywood actress, Regina Daniels who is still enjoying her trip to the United States,…

8 hours ago

Jay-Z has no ‘plans to show loyalty to longtime friend Diddy’ as he battles r@pe allegation

Jay-Z has no plans to show loyalty to longtime friend Sean 'Diddy' Combs amid the…

8 hours ago