One $500 million FGN bond is available for subscription from the federal government to interested investors. The Debt Management Office (DMO) stated in a statement on Monday that the bond is a domestic FGN dollar bond with a five-year maturity date of 2029 and an interest rate of 9.75 percent annually.
The offer will commence on August 18 and close on August 30. The settlement will take place on September 6.
The DMO’s statement which was accessed by BrandSpur national news brand, partly reads: “It is offered at 1,000 dollars per unit subject to a minimum subscription of 10,000 dollars (10 units), and in multiples of 1,000 dollars thereafter. The opening date for the offer is 18 August, the closing date is 30 August, and the settlement date is 6 September.
“It is offered at 1,000 dollars per unit subject to a minimum subscription of 10,000 dollars (10 units), and in multiples of 1,000 dollars thereafter.
“Coupon payment is semi-annually, while bullet repayment (principal sum) is on the maturity date,” it added.
Nigerian residents, Nigerians with funds overseas, Nigerians living abroad, and suitable institutional investors were named as eligible investors.
Continuing: “Payment shall only be made through the banking system and electronic transfers into the designated accounts.
Stated further: “No cash deposits will be accepted under this transition, except where such cash deposits have been made into the domiciliary accounts for not less than 30 days before the date of the offer.”
The Central Bank of Nigeria (CBN) accorded liquid asset status to the dollar-denominated FGN bond, which the DMO stated was backed by the Federal Government of Nigeria’s full faith and credit.
Revealing: “It qualifies as securities in which trustees can invest under the Trustee Investment Act.
“Qualifies as securities in which the Pension Fund Administrators can invest under the Pension Act.
“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors,” it added.
It stated that the FGN bond denominated in dollars would be listed on the FMDQ OTC Securities Exchange Limited and the Nigerian Exchange Limited.
According to the News Agency of Nigeria (NAN), to increase dollar liquidity, the federal government, acting through the Debt Management Office (DMO), announced plans to issue a $500 million local bond on Thursday.
Dollar money, according to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, is essential for the currency rate to stabilise.
