DMO To Auction N150 Billion Bonds Next Monday

The Debt Management Office (DMO) has offered N150 billion Federal Government of Nigeria (FGN) bonds for subscription, which will be auctioned next Monday, July 19, 2021.

The DMO announced in a circular on Monday that the bond auction which would now hold on Monday as against the usual Wednesday is in line with its establishment Act 2003.

The soon-to-be-auctioned bond, whose settlement date was put at Friday, July 23, 2021, is in three tranches of N50 billion each.

The first tranche is a 10-year re-opening bond to be offered at the coupon rate of 13.98 and a maturity date of February 2028.

The second tranche of N50 billion with a 12.40 percent rate has March 2036 (20 years) as maturity, while the third tranche of N50 billion with 12. 98 percent (30-year re-opening) has March 2050 maturity.

The circular indicated that the auction date would be Monday, July 19, 2021, with a settlement date of Friday, July 23, 2021.

Transactions would be at N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

For the 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.