The Debt Management Office has announced an offer of two Federal Government of Nigeria bonds valued at a total of ₦1 trillion. The bonds are available for subscription at ₦1,000 per unit.

The first is a new 10-year FGN bond worth ₦400 billion and due in September 2036. The second is a ₦600 billion reopening of a 15-year FGN bond due in 2038, carrying a coupon rate of 15.45 per cent per annum.

The offer opened on September 14, with settlement scheduled for September 16. The minimum subscription is set at ₦50 million, with additional amounts accepted in multiples of ₦1,000.

Interest on the bonds is payable semi-annually, while the principal will be repaid in full on the maturity date. For the reopened bond, successful bidders will pay a price based on the yield that clears the auction volume, plus any accrued interest.

The bonds are backed by the full faith and credit of the Federal Government. They qualify as investments for trustees and enjoy certain tax exemptions. They are also listed on the Nigerian Exchange and FMDQ OTC Securities Exchange and can be used by banks for liquidity ratio calculations.

Photo credit: Punch Newspaper