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DMO sells N100bn FGN bonds today

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Federal Government of Nigeria (FGN) bonds worth N100 billion would be sold to investors today by the Debt Management Office (DMO).

The paper would be auctioned in three maturities; 5-year bond maturing in 2023, 10-year bond maturing in 2029 and the debut 30-year bond maturing in 2049.

The debt office said in a notice it would offer N40 billion worth of the 5-year note, another N40 billion of the 10-year paper and N20 billion worth of the 30-year bond.

Already, 13 financial institutions have been authorised by the Nigerian government to sell the bonds to investors.

These financial institutions are Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank (FCMB) Plc and United Bank for Africa (UBA) Plc.

Others are Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank (GTBank) Plc, FBNQuest Merchant Bank Ltd and Stanbic IBTC Bank Plc.

Intending investors will be required to pay N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

The debt office stated that 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, with the interest paid semi-annually.

The rate the bonds would be offered by the debt office is not yet certain, but there are indications that it would be in double digits.

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