The Debt Management Office has said the Federal Government will offer N150bn bonds for subscription this month.
A circular by the DMO on its website showed that the breakdown of bonds consisted of three bonds worth N50bn each.
They are a 10-year re-opening bond to be offered at the rate of 12.50 per cent and mature in January 2026; a 20-year re-opening bond to be offered at 16.2499 per cent and mature in April 2037; and a 30-year re-opening bond to be offered at 12.98 per cent and mature in March 2050.
According to the DMO, the bonds, which will be auctioned on November 17, have a settlement date of November 19.
The units of sale are N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
On the interest rate, which is payable semi-annually, the DMO said, “For re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”
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According to the circular, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act, and as a liquid asset for liquidity ratio calculation for banks.
