Two Federal Government of Nigeria bonds worth a combined N1tn have been opened for subscription by the Debt Management Office, with the offer running from September 14 to September 16.
The offer comprises a new 10-year FGN bond worth N400bn, maturing in September 2036, and a N600bn reopening of a 15-year bond due in 2038, with a coupon rate of 15.45 per cent per annum.
The bonds are offered at N1,000 per unit, with a minimum subscription of N50m and additional subscriptions in multiples of N1,000.
For the reopened bond, successful bidders will pay a price based on the yield-to-maturity bid that clears the auction volume, plus any accrued interest.
Interest on the bonds will be paid twice a year, while the principal will be repaid at maturity.
The DMO said the securities would be listed on the Nigerian Exchange and FMDQ OTC Securities Exchange and would qualify as liquid assets for banks’ liquidity ratio calculations.