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FG to Auction N150b Bonds Today

By Dipo Olowookere

Federal government of Nigeria is today, Wednesday, February 20, 2019, selling bonds worth N150 billion to investors.

The exercise will be conducted by the Debt Management Office (DMO), with three different dated papers on offer.

According to the debt office, it would sell at 12.75 percent a five-year N50 billion worth of bonds maturing in April 2023.

Also, it would sell the seven-year N50 billion worth of the bonds maturing in March 2025 at 13.53 percent and the the 10-year bonds N50 billion worth of the bonds maturing in February 2028 at 13.98 percent.

Investors would be able to subscribe to the bonds at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

The bonds were backed by the full faith and credit of the Nigerian government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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