Debt Management Office releases FGN’s N720 billion bond issuance plan for Q3 2022

The Debt Management Office (DMO) has released its FGN bond issuance calendar for the third quarter of 2022. A plan which is aimed at raising between the range of N630 billion and N720 billion in the next three months.

This is contained in a document released by the DMO on its website.

According to the press release, the issuance for the quarter under review will be held on 18th July, 15th August, and 19th September 2022 respectively.

The breakdown of the calendar shows all bonds to be issued in the third quarter are reopening issuances.

Breakdown

• On the 18th of July 2002, bonds will be offered for subscription in three tranches of 10-year, 10-year, and 20-year original tenor respectively. The Debt Office hopes to raise between N210 billion and N240 billion in the month of July.
• Similarly, in the next month, the 13.53% FGN March 2025 will be issued on 15th August 2022, alongside the 12.5% FGN APR 2032 10-year bond and the 13% FGN JAN 2042 20-year bond.
• Also, on 19th September 2022, the 13.53% FGN MAR 2025 bond will be reopened together with the 12.5% FGN APR 2032 10-year bond, and the 13% FGN JAN 2042 20-year bond.

Below is a snapshot of the calendar released by the DMO.

What you should know about FGN Bonds

• FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due.
• When you buy FGN Bonds, you are lending to the FGN for a specified period of time. The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk-free debt instrument.
• According to the DMO, the bonds have no default risk, meaning that it is absolutely certain your interest and principal will be paid as and when due. The interest income earned from the securities is tax exempt.