The Debt Management Office, DMO, has announced it will auction four different federal government’s re-opening bonds worth N360 billion on April 17, 2023, with the settlement date slated for April 19, 2023, its latest bond auction notice shows.
According to the notice, the DMO says it will auction a N90 billion 10-year re-opening bond due February 2028 which has an interest rate of 13.98 percent.
When a bond is reopened, it will have the same maturity and interest rate as the original bond, only that reopening increases its amounts outstanding or the total value of the bond.
The second bond is a N90 billion 10-year re-opening bond due 2032 with an interest rate of 12.50 percent. The third is a N90 billion 20-year reopening bond due 2042, having an interest rate of 13 percent just as the fourth is a N90 billion 30-year re-opening bond due 2050 with an interest rate of 12.98 percent.
In terms of units of sale, the notice states that it is “N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter,’’ adding that interest will be paid semi-annually.
The Federal Government of Nigeria has been running budget deficit in the last few budget cycles, a development that has increased the public debt stock of Nigeria.
“As at December 31, 2022, the total public debt stock consisting the domestic debt and external debt of the Federal Government of Nigeria and the sub national government of the 36 states governments and the Federal Capital Territory was N47.25 trillion or USB 103.11 billion. The comparative figure for December 31, 2021 is N39.56 trillion or USD95.77 billion.
“In terms of composition, total debt stock was N27.55 trillion or USD61.42 billion while external debt was N18.70 trillion or USD41.19 billion,” DMO stated in March.
