February 2018 Circular: Invest in FGN Monthly Bond Auction

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Local Appetite For Bonds Continues To Weight Yields Down.

This is to bring to the notice of the public that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce  for Subscription by Auction and is authorized to receive applications for:

  • N50,000,000,000 – 14.50% FGN JUL 2021 (5-Year Re-opening)*
  • N50,000,000,000 – FGN FEB 2028 (10-Year New Issue)* 

Auction Date: February 21, 2018
Settlement Date: February 23, 2018

SUMMARY OF THE OFFER

ISSUER:
Federal Government of Nigeria (“FGN”)

UNITS OF SALE:
N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter

INTEREST RATE:
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 accrued interest from the original issue date.

INTEREST PAYMENT:
Payable semi-annually

REDEMPTION:
Bullet repayment on the maturity date

STATUS:
1. Qualifies as securities in which trustees can invest under the Trustee Investment Act

2. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors

3. Listed on the Nigerian Stock Exchange

4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks

SECURITY:
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria

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