The Debt Management Office (DMO) on behalf of the Federal Government has announced the offer of N150 billion bonds for subscription by auction for the month of May.
A breakdown of the bonds shows that a 10-year reopening bond is to be offered at the rate of 16.2884% with a maturity date in March 2027; a 15- year reopening bond will be offered at 12.5% with a maturity date in March 2035; and the third and longest bond which is a 30-year reopening bond will be offered at 14.8% and mature in April 2045.
This disclosure is contained in a circular issued by the DMO on May 11, 2021, and can be seen on its website.
The circular from the DMO states that the bonds which will be auctioned on May 19, 2021, have a settlement date of May 21, 2021, adding that the unit sales is N1,000 per unit subject to a minimum subscription of N50,000,000 and in multiples of N1,000 thereafter.
It also states that the interest is payable semi-annually with the redemption expected to be in bullet payment on the maturity date.
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The DMO had earlier disclosed that N150 billion Federal Government’s bonds offered for the month of March were over oversubscribed by N115.68 billion
The total subscription received from investors for the bonds was N265.68 billion, comprising N34.69 billion at 12.25% FGN with a maturity date of March 17, 2027; N56.13 billion at 13.34% with a maturity date of March 27, 2035; and N174.86 billion at 13.85% with a maturity date of July 24, 2045.
The auction result showed that the total bids were 50, 75 and 184, while the successful bids were 23, 43 and 91 for the 3 bonds allotted.