The Debt Management Office (DMO), has announced the auctioning of three tranches of Federal Government bonds of N150billion at N1,000 per unit.
The DMO in a disclosure on Wednesday, said that the three bonds are valued at N50 billion each, with interest rates of 13.98 per cent at 10-year Re-opening, 12.40 per cent at 20 years reopening and 12.98 per cent at 30 years reopening respectively. Also, the date of the bonds is due February 2028, March 2036 and March 2050.
According to the debt office, the auction date is August 18 2021, while the settlement date is fixed at August 20 2021.
The DMO disclosure said, “N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples ofN1,000 thereafter.
The office said that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
The DMO added that all federal government bonds qualified as liquid assets for the calculation of liquidity ratio for banks.
“Qualifies as securities in which trustees can invest under the Trustee Investment Act. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors.”
It added, “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.”