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  • Business - Economy
  • Updated: August 11, 2020

What You Need To Know About DMO's New N150 billion FGN Bonds

What You Need To Know About DMO's New N150 billion FGN Bonds

The Debt Management Office (DMO) has offered Federal Government Bonds (FGN Bonds) valued at N150 billion on behalf of the Federal Government, on Tuesday, August 11, 2020. The FGN Bonds come in four tranches for interested investors willing to subscribe to the bonds.

How The Bonds Are Splitted

The DMO will be receiving investors' application for the bonds, as the Auction Date is scheduled for August 19, 2020, while the Settlement Date is slated for August 21, 2020, a statement seen by AllNews disclosed. The following are the bonds;

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*N25,000,000,000 -12.50%FGN JAN2026(10-Yr Re-opening)

*N40,000,000,000 -12.50%FGN MAR2035(15-Yr Re-opening)

*N45,000,000,000 -9.80% FGNJUL2045(25-Yr Re-opening)

*N40,000,000,000 -12.98%FGNMAR2050(30-YrRe-opening)

UNITS OF SALE: N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples ofN1,000 thereafter.

INTEREST RATE: 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.

INTEREST PAYMENT: Payable semi-annually

REDEMPTION: Bullet repayment on the maturity date

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STATUS:

1. Qualifies as securities in which trustees can invest under the Trustee Investment Act.

2. 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.

3. Listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.

4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.

SECURITY: 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.

Note: Interested investors can visit this link to see participating banks in order to apply for the bond.

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