FG to auction ₦115 billion bonds on Nov. 21 – DMO

Federal Government

The Debt Management Office (DMO) says the Federal Government is to auction by subscription 115 billion worth of bonds on Nov. 21.

The DMO said in a circular on its website on Tuesday in Abuja, that the five-year bonds of 35 billion to mature in April 2023 was offered at 12.75 per cent.

The seven-year bonds, also of 35 billion, is to mature in March 2025 and would be auctioned at 13.53 per cent.

The circular added that the 10-year bonds of 45 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.

According to the DMO, units of sale is 1,000 per unit, subject to a minimum subscription of N50 million and in multiples of 1,000 thereafter.

The News Agency of Nigeria (NAN) that the bonds are 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.

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

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