The Debt Management Office has announced the reopening of two Federal Government Bonds valued at a total of N350 billion for public subscription, with the auction scheduled to take place on April 28, 2025.
In a statement released on Tuesday, the DMO disclosed that the bonds will be offered at a subscription rate of N1,000 per unit and that the settlement date for successful bids will be April 30, 2025.
According to the Office, the auction will involve two tranches. The first offer is for N200 billion worth of a five-year Federal Government savings bond, set to mature in April 2029, and will carry an annual interest rate of 19.30 per cent.
The second tranche, according to the DMO, will be N150 billion in nine-year Federal Government savings bonds, scheduled to mature in May 2033, at an annual coupon rate of 19.89 per cent.
The statement further outlined the subscription requirements, stating: “Transactions will be at N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.”
For the reopened bonds, the DMO noted that successful bidders will pay prices that reflect the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instrument.
“For Re-openings of previously issued bonds (where the coupon is already set), 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 explained.
Interest payments on the bonds, the agency added, are payable semi-annually, while principal redemption will be made in full (bullet payment) on the maturity date.
The DMO also emphasised the regulatory recognition and tax benefits of the instruments, stating: “Qualifies as Government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for Tax Exemption for pension funds amongst other investors. Listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
“All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.”
The bonds, it said, are fully backed by the credit and general assets of the Federal Government of Nigeria.
“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 DMO added.
