By Elizabeth Adegbesan
The Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) has offered a 5-year and 7-year bond valued at N100 billion each for subscription at N1,000 per unit.
DMO announced the offer on its Twitter handle yesterday, noting that the subscription unit is subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
It explained that the 5-year (reopening) FGN bond is due August 2030 while the 7-year (re-opening) FGN bond will be due by June 2032, both at 17.95 percent which can be paid semi-annually.
The agency said the auction date for subscription is September 29th, 2025 and the settlement date is October 2, 2025. It also noted coupon payment dates run through October 16, January 16, April 16 and July 16.
“DMO on behalf of FGN offers for Subscription by Auction and is authorized to receive applications for N100 billion at 17.945 percent FGN AUG 2030 (5- year re-opening) and N100 billion at 17.95 percent FGN June 2032 (7-year re-opening). The auction date is September 29, 2025 and the settlement date is October 2, 2025.
“Summary of sale is N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.”
On interest rate, DMO said: “For re-openings of 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 is payable semi-annually.
“The FGN Bonds 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.
“It is listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks”
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