The Debt Management Office (DMO) has reopened four different federal government bonds worth N360 billion, which will be auctioned on March 20, 2023, with the tenors of the bonds ranging from 10 to 30 years, the latest bond auction document from DMO has revealed.
The first bond is a 10-year re-opening N90 billion bond with an interest rate of 13.98 percent maturing in February 2028. The second bond is a 15-year N90 billion re-opening bond having an interest rate of 12.50 percent maturing in April 2032.
The third is a 20-year N90 billion re-opening bond with an interest rate of 16.2499 percent maturing in April 2037, while the fourth is a 30-year N90 billion re-opening bond with an interest rate of 14.80 percent maturing in April 2049.
The document further stated that the bonds cost N1000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1000 thereafter.
“FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria,” DMO stated.
Interest payment is semi-annually while bullet repayment is on the maturity date.
The financial institutions serving as the primary dealer market markers include Access Bank, First Bank, Standard Chartered Bank, Citibank, FCMB, United Bank for Africa, Coronation Merchant Bank, FSDH Merchant Bank, and Zenith Bank.
Others are Ecobank, Guaranty Trust Bank, FBNQuest Merchant Bank, and Stanbic IBTC Bank.
