DMO lists N150bn Nigerian government bonds for auction

The Debt Management Office (DMO) announced the auctioning of three federal government bonds of N150 billion at N1,000 per unit.

This was announced on Wednesday.

Details obtained from DMO’s website showed that the three bonds were valued at N50 billion each, with interest rates of 16.29 per cent; 12.50 per cent, and 9.80 per cent, respectively.

It listed the auction date as April 21, while the settlement date is April 23.

“Minimum units for sale are N50,001 thousand and in multiples of N1,000 thereafter. For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus any accrued interest rate on the instrument,” the DMO stated.

It explained that interest rates would be paid “semi-annually,” with bullet repayment on the maturity date.

The office said that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“It also qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds and other investors.

“It is listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange,” the DMO explained.

The DMO added that all federal government bonds qualified as liquid assets to calculate the liquidity ratio for banks.

It also assured that the bonds were backed by the full faith and credit of the federal government and charged upon Nigeria’s general assets.

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