Nigerian govt auctions another N150bn bond

The Debt Management Office (DMO) has said the Federal Government has concluded plans to auction N150bn worth of bonds by subscription on February 20.

According to a circular by the DMO on Wednesday, the breakdown of the figure included N50bn five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent and another N50bn seven-year reopening bond to mature in March 2025 and be auctioned at 13.53 per cent.

Also the breakdown showed that another N50bn 10-year bond would mature in February 2028 and be auctioned at 13.98 per cent.

The DMO also disclosed in the circular that bonds to be auctioned have a settlement date of February 22.

The DMO had earlier auctioned a N150bn bond on January 30 with a settlement date of February 1.

The DMO also said in the circular that it was offering the amounts on behalf of the Federal Government, and was authorised to receive applications for them.

The DMO said: “The units of the sale will be N1, 000 per unit, subject to a minimum subscription of N50, 001,000 and in multiples of N1, 000 thereafter.”

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The DMO also noted while speaking on the interest rates: “For re-opening 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.”

The DMO further noted that the FGN bonds were backed by the full faith and credit of the Federal Government and were charged upon the general assets of Nigeria.

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