Federal Govt.
The Debt Management Office (DMO) has announced that the Federal Government is offering three bonds totaling ₦150 billion in its September auction. According to the DMO, the bonds are re-openings of previously issued instruments and will be sold in units of ₦1,000, with a minimum subscription of ₦50 million, and in multiples of ₦1,000.
The first bond is a ₦70 billion April 2029 bond with a 19.30% coupon rate for a five-year tenor. The second is a ₦50 billion February 2031 bond with an 18.50% coupon rate for a seven-year tenor, while the third is a ₦30 billion May 2033 bond with a 19.89% coupon rate for a nine-year tenor.
The DMO stated that the auction occurred on September 23, 2024, with settlement on September 25, 2024. Successful bidders will pay a price corresponding to the yield-to-maturity bid that cleared the volume, including accrued interest.
These Federal Government bonds pay interest semi-annually, and the principal will be repaid in full upon maturity. They are backed by the full faith and credit of the Federal Government of Nigeria, qualifying as securities under the Trustee Investment Act, and they are also exempt from taxes for pension funds and other investors under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
In August, the DMO also offered two Federal Government savings bonds, including a two-year bond with a 17.373% coupon rate due on August 21, 2026, sold at ₦1,000 per unit.
