DMO Nigeria Auctioning 3 FG Bonds Worth N50 Billion - 1k Per Unit

On behalf of the Federal Government of Nigeria, DMO Nigeria are auctioning three FGN Bonds worth N50 billion each at the unit price of N1,000 per unit. Auction date is 21st of April, 2021.

Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004. THE DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription by Auction and is authorized to receive applications for:

  • N50,000,000,000 - 16.2884% FGN MAR 2027 (10-Yr Re opening)
  • N50,000,000,000 - 12.50% FGN MAR 2035 (15-Yr Re-opening)
  • N50,000,000,000 - 9.80% FGN JUL 2045 (25 Yr Re-opening)

Auction Date: April 21, 2021 and Settlement Date: April 23, 2021

SUMMARY OF THE OFFER

ISSUER: Federal Government of Nigeria (“FGN”)

UNITS OF SALE: N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

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INTEREST RATE: For Re openings cf previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield to maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

INTEREST PAYMENT: Payable semi-annually

REDEMPTION: Bullet repayment on the maturity date

STATUS: 1)

  1. Qualifies as securities in which trustees can invest under the Trustee Investment Act.
  2. 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.
  3. Listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.
  4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.

SECURITY: FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.

REDEMPTION: Bullet repayment on the maturity date

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INTERESTED INVESTORS SHOULD CONTACT OFFICES OF ANY OF THE FOLLOWING PRIMARY DEALER MARKET MAKERS (PDMMs):

Access Bank Plc. First Bank of Nigeria Ltd. Standard Chartered Bank Nigeria Ltd. Citibank Nigeria Ltd. First City Monument Bank Plc. United Bank for Africa Ple. Coronation Merchant Bank Ltd. FSDH Merchant Bank Ltd. Zenith Bank Plc. Ecobank Nigeria Ltd. Guaranty Trust Bank Plc. FBNQuest Merchant Bank Ltd. Stanbic IBTC Bank Plc.

The DMO reserves the right to alter the amount allotted in response to market conditions.

For more information visit the DMO twitter page

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