The Debt Management Office (DMO) has announced the offer of three Federal Government bonds valued at N800 billion for public subscription at N1,000 per unit.
In a statement on Tuesday, February 17, the DMO disclosed that the offer includes a N400 billion bond with an interest rate of 17.95 percent per annum, maturing in June 2032. This is a seven-year re-opening of a previously issued bond.
Also on offer is a N300 billion bond with a yield of 19.89 percent, set to mature in May 2034. This represents a 10-year re-opening. In addition, a N100 billion bond with a 19 percent interest rate, due in February 2034, is being offered as another 10-year re-opening.
The DMO stated that the auction will take place on February 23, with settlement scheduled for February 25, 2026.
“Units of sale is N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter,” the DMO said.
Regarding pricing for the re-opened bonds, the agency explained that for bonds where the coupon has already been set, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest.
Interest on the bonds will be payable semi-annually, while repayment will be made through a bullet payment at maturity.
The DMO noted that the bonds qualify as securities in which trustees may invest under the Trustee Investment Act. They also qualify as government securities under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemptions for pension funds and certain other investors.
The bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. The DMO added that all Federal Government of Nigeria (FGN) bonds qualify as liquid assets for banks’ liquidity ratio calculations.
According to the agency, the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the country.
The DMO also stated that it reserves the right to allot the bonds at its discretion and advised interested investors to approach authorised banks for participation.