DMO Offers N150bn Bonds

The Debt Management Office (DMO) on behalf of the federal government has offered N150 billion bonds for subscription for the month of July. The offer announced on Monday by the debt office via a circular was in three tranches of N50 billion each.

The first tranche is a 10-year reopening bond to be offered at the coupon rate of 13.98 and a maturity date of February 2028.

The second tranche of N50 billion with 12.40 per cent rate has March 2036 (20 years) as maturity, while the third tranche of N50 billion with 12. 98 per cent (30-year re-opening) has March 2050 maturity.

The circular indicated that the auction date would be Monday, July 19, 2021, with a settlement date of Friday, July 23, 2021.

Transactions would be at

N1, 000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

According to the DMO: “For re-openings 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.”