The Debt Management Office (DMO) has offered Federal Government of Nigeria (FGN) bonds worth N1.75 trillion at an auction scheduled for October 19, with minimum subscriptions starting at about N50 million.
The offer comprises three reopened bonds with maturities of 10 and 15 years and interest rates ranging from 15.45 per cent to 19 per cent.
The first tranche is a N500 billion 10-year bond carrying an interest rate of 19 per cent, while the second is an N800 billion 10-year bond with a rate of 16.79 per cent. The third tranche is a N450 billion 15-year bond offering 15.45 per cent interest.
According to the DMO, the minimum subscription is N50.001 million, with additional investments in multiples of N1,000.
The bonds are scheduled to be settled on October 21. Investors will receive interest payments every six months, while the principal will be repaid at maturity.
The FGN bonds will be listed on the Nigerian Exchange (NGX) and the FMDQ Securities Exchange, providing investors with access to the secondary market.
The securities are also eligible for inclusion as liquid assets by banks, subject to applicable regulatory requirements.
Interested investors can participate through the DMO’s authorised Primary Dealer Market Makers (PDMMs).
The auction offers investors an opportunity to invest in government-backed securities with fixed income returns over the specified tenures.
