The Debt Management Office (DMO) Wednesday announced that the Federal Government will offer N150bn bonds for subscription in March.
They are a N50 billion 10-year re-opening bond to be offered at the rate of 16.888% that will mature in March 2027, a N50 billion 15- year re-opening bond to be offered at 12.5% that will mature in March 2035, and the third and longest bond which is an N50 billion 25-year re-opening bond to be offered at 9.8% and mature in July 2045.
This disclosure is contained in a circular issued by the DMO on its website showing the breakdown of bonds comprising of 3 bonds worth N50 billion each.
The DMO in its statement said that the bond which has an auction date of March 24, 2021, and a settlement date of March 26, 2021, is to be auctioned at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
The DMO also noted that the interest payment is made semi-annually with the redemption expected to be a bullet repayment on the maturity date.
What you should know
- It can be recalled that the DMO had earlier disclosed that the Federal Government’s bonds for February worth N150bn were oversubscribed by N39.51bn.
- The total subscription received from investors for the bonds was N189.51bn, comprising of N77.05bn for 16.2884% FGN March 2027 bonds, N72.33bn for 12.5% FGN March 2035 bonds and N40.13bn for 9.8% FGN July 2045 bonds.
- The auction result showed that out of the 78, 53 and 60 total bids for the tenures, 31, 20 and 30 bids were successful.
- The DMO stated that a total of N80.55 billion was allotted comprising of N33.62 billion, N28.9 billion and N18.03 billion.
