FG to auction N100bn bonds March 27

The Debt Management Office has said the Federal Government will auction N100bn worth of bonds by subscription on March 27.

A circular by the DMO on Tuesday showed the breakdown of the figure to include a N40bn five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent; another N40bn seven-year reopening bond to mature in March 2025 and be auctioned at 13.53 per cent; while another N20bn 10-year bond would mature in February 2028 and be auctioned at 13.98 per cent.

According to the DMO, the auction date is March 27, 2019, while the settlement date is March 29, 2019.

The circular said the DMO, on behalf of the Federal Government of Nigeria, was offering the amounts for subscription by auction and was authorised to receive applications for them.

The DMO said, “The units of sale will be N1, 000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.”

On the interest rate, it stated, “For re-opening 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.”

On the securities, it added that the FGN bonds were backed by the full faith and credit of the Federal Government and were charged upon the general assets of Nigeria.

In February, the Federal Government auctioned N150bn bond through the DMO which was oversubscribed by N84bn.

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