DMO to auction N150bn FG bonds on Wednesday

The Debt Management Office (DMO) says it will auction N150 billion federal government bonds to investors on Wednesday, June 23, 2021.

The agency made the announcement in a circular published on its website on Friday.

The auction comprises three bonds valued at N50 billion each. It includes a 10-year reopening bond to be offered at the rate of 16.2884 percent with maturity date of March 2027, a 15- year reopening bond to be offered at 12.5 percent with maturity date of March 2035, and a 30-year reopening bond to be offered at 12.98 per cent and mature in March 2050.

The settlement date of the bond auction is June 25, 2021, the DMO noted.

It said the unit of sale is N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

It added that interest is payable semi-annually, with the redemption expected to be in bullet payment on the maturity date.

For re-openings of previously issued bonds (where the coupon is already set), the agency specified that successful bidders 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.

The DMO said that all federal government bonds qualified as liquid assets using liquidity ratio for banks as calculation.

It further assured investors that 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.

In May, the DMO had offered three federal government bonds valued at N50 billion each for subscription by auction.