The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the offering of three bonds totaling N150 billion for its September auction. The bonds are re-openings of previously issued securities, available in units of N1,000, with a minimum subscription of N50 million and in multiples of N1,000 thereafter.
The first bond, valued at N70 billion, matures in April 2029 and carries a 19.30% coupon rate for a five-year tenor. The second bond, worth N50 billion, is due in February 2031 and offers an 18.50% coupon rate over a seven-year period. The third bond, a N30 billion issue, matures in May 2033 with a 19.89% coupon rate for a nine-year tenor.
The auction took place on September 23, 2024, with settlement scheduled for September 25. Investors will pay based on the yield-to-maturity rate that matches the clearing volume, alongside any accrued interest. The bonds offer semi-annual interest payments, with the principal repaid in full at maturity.
The DMO emphasized that these bonds are backed by the full faith and credit of the Federal Government and qualify as securities under various investment and tax laws, making them attractive to trustees, pension funds, and other institutional investors. Additionally, they are listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
In a previous offering in August, the DMO had released two Federal Government savings bonds, with the two-year bond maturing in August 2026 at a coupon rate of 17.373% per annum.
