By Adedapo Adesanya
The Federal Government of Nigeria through the Debt Management Office (DMO) is set to auction fresh bonds valued at N145 billion for subscription come Wednesday, July 24, 2019.
In a circular released to the public, the DMO revealed that the settlement date for the subscription has been scheduled for Friday, July 26, 2019.
The bonds would be offered at a 12.75 percent coupon rate for N40 billion worth of the 5-year bond, 14.55 percent coupon rate for N50 billion worth of the 10-year bond and 14.80 percent coupon rate for N55 billion worth of the 30-year bond.
The nation’s debt management office stated that subscriptions for the bonds would be at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
While revealing that all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks, the DMO said the bonds to be auctioned also qualify as securities in which trustees can invest under the Trustee Investment Act.
Accordingly, “it also qualifies as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, amongst other investors.”
The DMO has advised interested investors to contact the stockbroking firms it appointed as distribution agents.
These stockbroking firms include Access Bank Plc, First Bank of Nigeria Limited, Standard Chartered Bank Nigeria Limited, Citi Bank Nigeria Limited, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Limited, FSDH Merchant Bank Limited, Zenith Bank Plc, Ecobank Nigeria Limited, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Limited, and Stanbic IBTC Bank Plc.
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