ABUJA — The Debt Management Office (DMO) has disclosed it decision to auction N150 billion federal government bonds to investors.
According to the agency, the action will be conducted on Wednesday, February 16, 2022.
This was indicated in a circular recently published on its website.
The bond issuance will be in two tranches valued at N75 billion each. The first tranche is the 10-year, 12.5 percent FGN Jan 2026 re-opening bond, and the other is the 20-year, 13 percent FGN 2042 reopening bond.
The DMO noted that the bonds sell for N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 afterward.
The DMO stated that the settlement date of the bond issuance is February 18, 2022.
The agency specified that successful bidders of previously issued bonds are required to pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.
It said interest on the bonds would be payable “semi-annually” while bullet payments would be made on the maturity date.
“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,” the circular reads.
“Listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.”
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