The Debt Management Office on behalf of the Federal Government has announced the offer of N150 billion bonds for subscription by auction for the month of July.
A breakdown of the bonds shows the offer comes in three tranches of N50 billion each.
The first is a 10-year reopening bond to be offered at the rate of 13.98 with a maturity date of February 2028, the second tranche of N50 billion of 12.40 per cent rate has March 2036 (20 years) as maturity while the last tranche of N50 billion with 12. 98 per cent (30-year re-opening) has March 2050 maturity.
The details are contained in offer circular issued by the DMO on July 12, 2021 by the debt agency.
The circular put the auction date for Monday, July 19, 2021 and settlement date Friday, July 23, 2021. In addition, it reserves unit sale at N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
For interest rate, it states that: “For re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield- to- maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument”.
Federal Government bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.