Federal Government to auction N90bn worth of bonds

Federal Government, bonds

The Debt Management Office has said the Federal Government has offered for
 subscription by auction N90 billion worth of bonds in its April 25 auction.

The offer circular obtained from its website on Tuesday in Abuja, stated that it would sell N30 billion of a five-year new issue maturing in April 2023 at an undisclosed rate.

Below is how it is described on its website downloaded file;

N30,000,000,000 – FGN APR 2023 (5-Yr New Issue)*
N30,000,000,000 – 13.53% FGN MAR 2025 (7-Yr Re-opening)*
and N30,000,000,000 – 13.98% FGN FEB 2028 (10-Yr Re-opening)*

Auction Date: April 25, 2018
Settlement Date: April 27, 2018

It would also sell N30 billion seven-year re-opening bond to mature in March 2025 at 13.53 per cent and another N30 billion 10-year re-opening bond at 13.98 per cent to mature in Feb. 2028.

Read: Ex-SEC DG Mounir Gwarzo reinstatement plan rejected by Labour

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

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.

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