If you have some money starched up somewhere and you have been wondering where to invest or what to do with it, you just got lucky.
The Debt Management Office has just revealed plans to put four bonds of the Federal Government of Nigeria worth ₦360, up for sale. It says you can invest in it.
The Debt Management Office (DMO) announced the offer on Tuesday.
The general public can subscribe to the four Federal Government of Nigeria’s (FGN) bonds They are valued at ₦360 billion through an auction.
Value Of The Four Bonds
In a statement, the DMO said the first offer was an April 2029 FGN bond valued at ₦90 billion. This is offered at an interest rate of 14.55% per annum (10-year re-opening).
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The second offer is a June 2033 FGN bond valued at ₦90 billion. It is offered at a 14.70% interest rate per annum (10-year re-opening).
There is also the June 2038 FGN bond valued at ₦90 billion. This is offered at an interest rate of 15.45% per annum (15-year re-opening).
The fourth offer is a June 2053 FGN bond. Also, this is valued at ₦90 billion, at an interest rate of 15.70% per annum (30-year re-opening).
“The auction date is December 11, and the settlement date is December 13.
“They are offered at ₦1,000 per unit, subject to a minimum subscription of ₦50 million and in multiples of ₦1,000 thereafter.
“For re-openings of previously issued bonds, 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,” the DMO said.
According to the DMO, the interest on the FGN bond is paid semi-annually.
Also, the bullet repayment is on the maturity date.
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Bonds Have Government Backing
The DMO stated that FGN bonds were backed by the full faith and credit of the Federal Government.
Furthermore, it is charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“Qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among others.
“They are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange,” it said.
