DMO opens N1tn FGN bond subscription, sets N50m minimum

The Debt Management Office has opened subscriptions for two Federal Government of Nigeria bonds, each valued at N1tn. The first is a new 10-year bond due in September 2036, while the second is a reopened 15-year bond with a 15.45% coupon rate, maturing in 2038. The subscription began on September 14, with a minimum investment requirement of N50 million, payable in N1,000 units.

The DMO clarified that successful bidders would pay the price based on the yield-to-maturity bid that meets the auction volume, plus accrued interest. Interest payments are made semi-annually, with the principal repaid at maturity. These government securities are backed by the full faith and credit of the Federal Government and can be claimed as investments for tax exemptions under relevant tax laws.

The bonds are listed on the Nigerian Exchange and FMDQ OTC Securities Exchange, qualifying as liquid assets for banks' liquidity ratio calculations. The DMO emphasized that bonds serve as fixed-income debt securities used to fund government spending on infrastructure and public projects.