DMO to auction N700bn FGN bonds at N1,000 per unit

The Debt Management Office (DMO) has reopened three federal government bonds, valued at N700 billion, for subscription at N1,000 per unit.

A bond is a fixed income instrument that represents a loan made by an investor to a borrower — typically corporate or government.

In a circular issued on Wednesday, the agency said the bonds are scheduled to be opened April 27.

According to the DMO, the bonds comprise N300 billion for a five-year instrument maturing in August 2030 at 17.98 percent.

The second bond is N100 billion for a seven-year bond maturing in June 2032 at 17.95 percent , and N300 billion for a 10-year bond maturing in January 2035 at 22.60 percent.

The DMO said the settlement date for the bonds is April 29, 2026, adding that the instruments are part of the government’s strategy to finance budgetary obligations and support public expenditure.

“Unit of sale is N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter,” DMO said.

“The bonds are offered for subscription by auction and successful bidders will 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 interest payments on the bonds will be made semi-annually, while the principal will be repaid in full on the maturity date.

“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,” the agency said.

The office added that the securities qualify as government instruments under relevant tax laws and can be invested in by trustees, pension funds, and other institutional investors.

The DMO also said the bonds are listed on the Nigerian Exchange (NGX) Limited and the FMDQ OTC Securities Exchange, and qualify as liquid assets for banks’ liquidity ratio calculations.

The agency urged interested investors to submit applications through authorised primary dealer market makers (PDMMs) ahead of the auction date.(TheCable)