The Federal Government of Nigeria, through the Debt Management Office (DMO) has offered for subscription Federal Government Bonds (FGN Bonds) valued at N60 billion in December 2020.
This is according to a notification released by the DMO and seen by Nairametrics. The latest offer comes in two tranches;
- N30,000,000,000 – 12.50% FGN MAR 2035 (15-Yr Re-opening)
- N30,000,000,000 – 9.80% FGN JUL 2045 (25-Yr Re-opening)
READ: Pension Fund Managers dump Nigerian Treasury Bills
Some other key highlights of the recent offer are:
- UNITS OF SALE: N1, 000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
- Auction Date: December 16, 2020.
- Settlement Date: December 18, 2020.
READ: Fashola to fix 44 roads across Nigeria with Sukuk funds
What you should know
- Findings by Nairametrics revealed that the latest FGN Bond offer across two maturities is N20 billion less than the amount offered in the previous month (November 2020) at N80 billion, indicating a decline of 25% Month-on-Month.
- 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.
- According to Investopedia, a bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments..
READ: ECOWAS CDC confirms 214,886 new Covid-19 cases, Nigeria and 2 others top with 67.8%