FG to Offer N150 Billion Bonds for Subscription on June 17, 2020

DMO to Auction N150 Billion Bonds for Subscription in June

The Federal Government through the Debt Management Office (DMO) has announced the offering of N150 billion bonds for subscription by auction.

In the circular released on Tuesday, the DMO said N40,000,000,000 five years reopening bonds with April 2023 as maturity date would be offered at an interest rate of 12.75 percent for subscriptions.

Another N50,000,000,000 Federal Government of Nigeria issued 15 years reopening bonds with March 2035 as maturity date would be auctioned at an interest rate of 12.50 percent.

Accordingly, N60,000,000,000 15 years reopening bonds with March 2050 would be on offer at a rate of 12.98 percent.

According to DMO, the auction date is June 17, 2020, while the settlement date is June 19, 2020.

On units of sale, DMO said it remains N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

“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,” DMO stated.