FG To Auction Bond Worth N150 Billion in April – Read How to Participate

Federal government DMO Bond Auction

The Debt Management Office (DMO) has announced that the Federal Government of Nigeria will offer a total of N150 billion worth of bonds for subscription in April 2021.

This disclosure is contained in a circular available on the website of DMO and seen by naijabusiness.com.ng.

The breakdown of the circular showed that the following will be offered;  

  • N50billion 10-year re-opening bond with a coupon rate of 16.2884% and a maturity date of March 2027.
  • A N50 billion 15-year re-opening bond with a coupon rate of 12.5% and a maturity date of March 2035.
  • The last tranche which is the longest is a N50 billion 25-year re-opening bond which will be offered at 9.8% and will mature by July 2045.

It is pertinent to note that the coupon or interest payment is made semi-annually with the redemption expected to be a bullet repayment on the maturity date. Furthermore, DMO in its statement noted that the auction date for the recent offer is 21st of April, 2021, while the settlement date is 23rd of April, 2021.

The offer is to be auctioned at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

READ: How To Invest in Nigeria Treasury Bills, Even with Low Capital

The DMO had earlier announced the offer of FGN bonds worth N150 billion for March 2021, with coupon rates of 16.888%, 12.5% and 9.8% for 10, 15 and 25 year offers respectively.

FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN), issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due. Interested investors are advised to contact offices of any of the listed 13 Primary Dealers Market Makers (PDMMs).

The List of Licensed Primary Dealer Market Makers (PDMMs) in Federal Government of Nigeria Bonds licensed by the Debt Management Office are as follows:
• Access Bank Plc.
• Citibank Nigeria Ltd.
• Coronation Merchant Bank Ltd.
• Ecobank Nigeria Ltd.
• First Bank of Nigeria Ltd.
• FBN Merchant Bank Ltd
• First City Monument Bank Plc.
• FSDH Merchant Bank Ltd.
• Guaranty Trust Bank Plc.
• Stanbic IBTC Bank Plc.
• Standard Chartered Bank Nigeria Ltd.
• United Bank for Africa Plc.
• Zenith Bank Plc.