The Debt Management Office (DMO) has announced that the Federal Government of Nigeria is offering N150 billion worth of bonds in its September 2024 auction.
These bonds are reopenings of previously issued instruments and will be sold in units of N1,000, with a minimum subscription of N50 million.
The bonds include an April 2029 bond with a 19.30% coupon rate, a February 2031 bond with an 18.50% rate, and a May 2033 bond with a 19.89% rate, covering five, seven, and nine-year tenors, respectively.
The auction was conducted on September 23, 2024, with settlement scheduled for September 25. Successful bidders will pay prices based on the yield-to-maturity, along with accrued interest.
Interest on these bonds will be paid semi-annually, and the principal amount will be fully repaid upon maturity.
The bonds are guaranteed by the Federal Government and are eligible for tax exemptions for pension funds and other investors under Nigerian tax laws.
These bonds are listed on the Nigerian Exchange Limited and FMDQ Securities Exchange. They qualify as safe investments for trustees under the Trustee Investment Act and are recognized as government securities for tax exemptions under the Company Income Tax Act and Personal Income Tax Act.
In August, the DMO also offered Federal Government savings bonds with a coupon rate of 17.373% per annum.
Business Day