Nigeria to Sell N150b Bonds to Investors February 20

By Modupe Gbadeyanka

All things being equal, federal government of Nigeria will next week auction bonds worth N150 billion to investors in the local market.

The exercise will be conducted by the Debt Management Office (DMO) precisely on Wednesday, February 20, 2019, Business Post learned.

It was gathered that the bonds would be offered in three different maturities; 5-year, 7-year and 10-year, with all re-opening.

The DMO said on Thursday that the five-year N50 billion worth of bonds maturing in April 2023 would be offered at 12.75 percent; the seven-year N50 billion worth of the bonds maturing in March 2025 would be sold at 13.53 percent; while the 10-year bonds N50 billion worth of the bonds maturing in February 2028 would be auctioned at 13.98 percent.

According to the DMO, the bonds would be offered 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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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