Nigeria’s Debt Management Office (DMO) has announced it will auction on behalf of the Federal Government of Nigeria, four different bonds with a cumulative value of N360 billon by January 30, 2023. Settlement date, according to the DMO notice, is February 1, 2023.

The first offer, a 10-year reopening N90 billion bond with an interest rate of 13.98%, is due for maturity in February 2028. The second bond is a N90 billion 15-year reopening bond with an interest rate of 12.50% due for maturity in 2032.

The third bond is a N90 billion 20-year reopening bond with an interest rate of 16.2499% due for maturity in 2037, just as the fourth bond is a 30-year N90 billion reopening bond with an interest rate of 14.80% due for maturity in 2049.

According to the auction notice, the minimum unit of sale is N1000 per unit, subject to a minimum subscription of N50,001,000 and n multiples of N1000 thereafter.

“For re-openings of previously issued bonds, (where the coupon is already set), 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 stated, adding that it reserves the right to alter the amount allotted based on market conditions.
In a related development, the FCMB Group, one of the leading commercial banks in Nigeria, has announced it will issue N30 billion series I additional tier 1 bond under its N300 billion debt issuance programme, a notice sent to the Nigerian Exchange Group authorized by Funmi Adedibu, company secretary, has shown.

“FCMB Group Plc has completed the registration of its N300 billion Debt Issuance Programme with the Securities and Exchange Commission and received the Commission’s approval to launch the Series I up to N30 Billion Perpetual Fixed Rate Resettable NC5.25 Additional Tier 1 Bond.

“The Issuance represents the first non-sharia local currency AT1 instrument to be issued in Nigeria and has received CBN’s no-objection. FCMB Group will commence the book build in respect of the Series I Bond on January 24, 2023,” the notice added.