The Debt Management Office (DMO), on behalf of the Federal Government, has provided bonds price N1.75 trillion for subscription at an public sale scheduled for Oct. 19.
According to a round by the DMO, the provide includes three beforehand issued FGN bonds being reopened to traders.
The bonds comprise N500 billion of a 10-year bond at rate of interest of 19 per cent each year, and N800 billion of one other 10-year bond at 16.79 per cent rate of interest each year.
The third provide is N450 billion of a 15-year bond at 15.45 per cent rate of interest each year.
The DMO mounted Oct. 21 for the settlement of profitable bids.
It stated that the securities certified as investments for trustees below the Trustee Investment Act and as authorities securities below the Company Income Tax Act and Personal Income Tax Act, topic to relevant provisions.
The round stated that the bonds have been listed on the Nigerian Exchange Ltd. and the FMDQ OTC Securities Exchange.
“All FGN bonds qualify as liquid assets for calculating banks’ liquidity ratios.
“Interest on the bonds will be paid semi-annually, while the principal will be repaid in a lump sum on the respective maturity dates,” it stated.
It stated that, for reopened bonds whose coupon charges had already been established, profitable bidders would pay costs similar to the accepted yield-to-maturity bids, along with accrued curiosity, the place relevant.
The round pegged the unit of sale at N1,000, with a minimal subscription of N50,001,000 and extra subscriptions in multiples of N1,000.
“Interested investors were advised to contact any of the listed Primary Dealer Market Makers (PDMMs), including Access Bank Plc., Citibank Nigeria Ltd., First Bank of Nigeria Ltd., United Bank for Africa Plc., Zenith Bank Plc. and Guaranty Trust Bank Ltd.
Other designated dealers include Stanbic IBTC Bank Ltd., FBNQuest Merchant Bank Ltd., Coronation Merchant Bank Ltd., Ecobank Nigeria Ltd., First City Monument Bank Plc., Standard Chartered Bank Nigeria Ltd., FSDH Merchant Bank Ltd. and Rand Merchant Bank Nigeria Ltd.”
The DMO reserved the precise to allot the bonds at its discretion.
The News Agency of Nigeria (NAN) reviews that Federal Government of Nigeria (FGN) Bonds are fixed-income debt securities issued by the DMO on behalf of the Federal Government.
They enable traders to lend cash to the federal government to finance infrastructure, public initiatives, and nationwide funds deficits.
This is as a result of they’re backed by the complete religion and credit score of the Federal Government, FGN bonds are thought of risk-free debt devices with zero default danger on principal and curiosity payouts.(NAN) www.nannews.ng
Edited by Deji Abdulwahab
