FGN Bonds: DMO Offers N150 Billion for Subscription

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FGN Bonds: DMO Offers N150 Billion for Subscription

The Central Bank of Nigeria on the authority of The Debt Management Office (DMO) on behalf of the Federal Government Of Nigeria Offers for Subscription by Auction and is authorized to receive applications for the following FGN Bonds:

  • N25,000,000,000 – 12.50% FGN JAN 2026 (10-Yr Re-opening)*
  • N40,000,000,000 – 12.50% FGN MAR 2035 (15-Yr Re-opening)*
  • N45,000,000,000 – 9.80% FGN JUL 2045 (25-Yr Re-opening)*
  • N40,000,000,000 – 12.98% FGN MAR 2050 (30-Yr Re-opening)*

Auction Date: August 19, 2020

Settlement Date: August 21, 2020

For a clear understanding of what FBN Bonds is all about, please check here…

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
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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

How To Invest

Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).