The Debt Management Office (DMO), on behalf of the federal government, has reopened three bonds valued at N800 billion for subscription at N1,000 per unit.

According to a statement by the DMO on Monday, the first offer is a June 2032 FGN bond (seven-year reopening), valued at N400 billion, with an interest rate of 17.95 per cent per annum.

The second offer is a May 2033 FGN bond (10-year reopening), valued at NN300 billion, with a 19.89 interest rate per annum.

The third offer is a February 2034 FGN bond (10-year reopening), valued at N100 billion, with an interest rate of 19 per cent per annum.

“They are reopening at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“Interest is payable semi-annually, and bullet repayment is on the maturity date,” the DMO said.

It said that for reopenings 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.

The statement said bonds were backed by the true faith and credit of the federal government and were charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among others.

“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,” the DMO said.

It said that all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks.

(NAN)