DMO Announces Re-opening of N450bn FGN Bonds for Auction

The Debt Management Office (DMO) announced on Thursday the re-opening of three Federal Government of Nigeria (FGN) savings bonds worth N450 billion, available for subscription by auction.

In Abuja, the DMO revealed that the bonds are priced at N1,000 per unit, with a minimum subscription of N50 million and multiples of N1,000 thereafter.

The auction date is set for June 14, with settlement on June 26. Interest payments will be made semi-annually, and the principal sum will be repaid on the maturity date.

The DMO clarified that for re-opened bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, plus any accrued interest.

These bonds are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria. They qualify as securities for trustees under the Trustees Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act, making them tax-exempt for pension funds and other investors. Additionally, they are listed on the Nigerian Exchange Limited and FMDQ ODC Securities Exchange and qualify as liquid assets for banks’ liquidity ratio calculations.

This N450 billion bond offer is part of the government’s local borrowing plan to address the N9 trillion deficit in the 2024 budget