The Debt Management Office (DMO) has announced the opening of the Federal Government’s August bond offer for subscription.
According to a recent circular released by the DMO, the offer comprises two bonds: a N100 billion FGN JUL 2030 bondand a reopening of the N100 billion FGN JUN 2032 seven-year bond.
The FGN JUL 2030 bond has a five-year tenor and will mature in August 2030, while the reopened seven-year bond will mature in June 2032 at a coupon rate of 17.95%.
The auction is scheduled for August 25, 2024, with a settlement date of August 27, 2024.
Each bond is priced at N1,000 per unit, subject to a minimum subscription of N50,001,000, and in multiples of N1,000 thereafter.
For reopened issues where coupon rates are already fixed, the DMO explained that successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume on offer, including any accrued interest. Interest payments on the bonds will be made semi-annually.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged on its general assets, guaranteeing investors both interest payments and repayment of principal at maturity.
The DMO advised interested investors to submit their bids through any of the authorised Primary Dealer Market Makers (PDMMs), which include: Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, and Guaranty Trust Bank Ltd.
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