The Nigerian Debt Management Office (DMO) has announced the issue of ₦450 billion in bonds.
The auction, which is scheduled for May 13, 2024, is a component of the government’s strategy to raise money while providing opportunities for investors.
Three series of bonds, each with different maturity periods and competitive returns, will be on display at the next auction.
The first in line is the five-year reopening of the 19.30 per cent FGN APR 2029 bond, which aims to amass ₦150bn.
With a guaranteed return rate of 19.30 percent, this series assures investors of steady profits.
The seven-year reopening of the 18.50 percent FGN FEB 2031 bond, which likewise has ₦150 billion as its aim, would follow suit. This bond, which has an 18.50% coupon rate, is evidence of the government’s dedication to offering reliable investment choices that support the development of the country.
The launch of a new nine-year bond, the FGN MAY 2033, which is intended to generate the remaining ₦150 billion, is the auction’s major attraction. The coupon rate on this bond will be decided at the auction, making it a compelling offer for investors looking for long-term opportunities.
Each bond unit is priced at ₦1,000, with a minimum subscription set at ₦50,001,000 and increments of ₦1,000 thereafter. Interest on these bonds will be disbursed semi-annually, ensuring a steady income stream for investors.
The bonds are scheduled to mature with a bullet repayment, backed by the Federal Government’s guarantee, thus offering a secure investment. Additionally, these bonds are exempt from taxes for pension funds and other eligible investors, further enhancing their appeal.
The listing of these bonds on the FMDQ OTC Securities Exchange and the Nigerian Exchange Limited should excite investors as it would guarantee liquidity and facilitate transaction.
By taking this action, the DMO reaffirms its dedication to strengthening Nigeria’s financial system and offering alluring investment opportunities to support economic growth.
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