DMO To Auction N225bn Bond Today

The Debt Management Office (DMO) is set to announce the listing of three Federal Government of Nigeria bonds valued at N225 billion for subscription via auction at N1,000 per unit, today.

The DMO which made the announcement in a statement issued in Abuja, said the first offer for N75 billion had been previously issued and has a maturity date of March 2025 at an interest rate of 13.53 per cent per annum (10-year re-opening).

There is also the N75 billion bond maturing in April 2032 at an interest rate of 13.5 per cent (10-year re-opening). The third one also is N75 billion, maturing in January 2042 at an interest rate of 13 per cent per annum (20-year re-opening).

According to the DMO, the bonds are subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“For re-opening 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.

“Interest is paid semi-annually while the bullet payment is made on maturity,’’ it stated.