DMO offers for subscription N30 billion FGN bonds on October 21

The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has announced the offer for subscription by auction, a total of N30bn worth of bonds on October 21.

This was disclosed in a circular which was issued by the Debt Management Office on Thursday, October 16, 2020.

According to the circular which was seen by Nairametrics, a breakdown of the offer by the DMO showed that the sum of N15 billion will be a 15-year re-opening bond at 12.5% per annum, that would mature in March 2035 and another N15 billion 25-year re-opening bond at 9.8% per annum, that would mature in July 2045.

According to the DMO, the auction date is October 16, 2020, and the settlement date for the bonds to be auctioned is October 23, 2020.

The circular stated that the bond will be sold at N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter. It should be noted that interest payment is payable semi-annually and the bullet repayment is on the maturity date.

Backstory

Recall that the Federal Government’s N145 billion bond offer for the month of September was oversubscribed by N215.22bn.

The total subscription received from investors for the bonds was N360.22bn, comprising N83.83bn for 12.5% FGN January 2026 bonds; N71.4 billion for 12.5 FGN March 2035 bonds; N41.06 billion for 9.8% FGN July 2045 bonds; and N163.93 billion for 12.98% FGN March 2050 bonds.