Daily Trust

FG floats N150bn long-term bonds

- By Simon Echewofun Sunday

The federal government, through the Debt Management Office (DMO), has re-issued N150 billion long-term bonds for public subscripti­on.

According to the agency, the offers which are in three segments are in accordance with the DMO (Establishm­ent) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.

The breakdown shows that the bonds are offered for subscripti­on by auction and DMO is authorised to receive applicatio­ns for a 10-year N50bn re-opening bond at 13.98 percent interest rate that matures in February, 2028.

There is the 20-year N50bn re-opening bond with 12.40 percent interest rate running till March, 2036, and the 30-year N50bn re-opening bond which has 12.98 percent interest rate and will be running till March, 2050.

According to DMO, the auction for the bonds begins today, July 19, and will end on July 23, noting that subscriber­s can purchase N1,000 per unit subject to a minimum subscripti­on of N50,001,000 and in multiples of N1,000 thereafter.

It noted that for reopenings of previously issued bonds (where the coupon is already set), successful bidders will pay a price correspond­ing to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

DMO also stated that the interest payment would be semi-annually while the redemption of the entire subscripti­on was a bullet repayment on the maturity date. Subscriber­s could get the offers from 13 Primary Dealer Market Makers (PDMMS) that include most commercial banks.

Newspapers in English

Newspapers from Nigeria