FG offers N100bn worth of bonds
The Federal Government has offered for subscription by auction N100 billion worth of bonds in its June 26 auction, the Debt Management Office (DMO) said.
The offer circular obtained from its website on Tuesday in Abuja, stated that it would sell N30 billion of a five year re-opening issue maturing in April 2023 at 12.75 per cent.
DMO would also sell N40 billion 10 year re-opening bond to mature in April 2029 at 14.55 per cent and another N30 billion 30 year re-opening at 14.80 per cent to mature in April 2049.
According to the DMO, units of sale is N1, 000 per unit, subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.
The DMO explained that the bonds were backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.