By Milcah Tanimu
The Nigerian government, through the Debt Management Office (DMO), has launched three FGN bonds totaling N150 billion, available for subscription at N1,000 per unit.
The first bond is a re-opening of the April 2029 FGN bond, valued at N70 billion with an interest rate of 19.30% per annum. The second bond, valued at N50 billion, offers an interest rate of 18.50% per annum and matures in February 2031. Finally, the May 2033 FGN bond, worth N30 billion, features a 19.89% interest rate.
Investors can subscribe with a minimum investment of N50 million, increasing in increments of N1,000. For re-openings of previously issued bonds, successful bidders will pay a price based on the yield-to-maturity bid plus any accrued interest.
The DMO set the auction date for these bonds as September 23, 2024, and the settlement date as September 25. Investors will receive semi-annual interest payments, and they will repay the principal amount at maturity.
These FGN bonds carry the full backing of the Federal Government of Nigeria and secure against the country’s general assets. They qualify as investments under the Trustee Investment Act and provide tax exemptions for pension funds and other investors under the Company Income Tax Act and Personal Income Tax Act.
The DMO confirmed that these bonds list on the Nigerian Exchange Limited and FMDQ OTC Securities Limited, ensuring accessibility and security for stakeholders.
