Abuja: The Debt Management Office (DMO) has announced the re-opening of Federal Government of Nigeria (FGN) bonds valued at N200 billion for subscription in July. The announcement, made on Thursday, highlights two specific bond offerings available for potential investors.

According to News Agency of Nigeria, the first bond offer is an August 2030 FGN bond valued at N100 billion, carrying an interest rate of 17.945 percent for a 5-year re-opening. The second bond offer is a June 2032 FGN bond, also valued at N100 billion, with an interest rate of 17.95 percent for a 7-year re-opening. The auction date for these bonds is scheduled for September 29, with a settlement date set for October 2.

The statement further detailed that these bonds are offered at N1,000 per unit, with a minimum subscription requirement of N50 million and in multiples of N1,000 thereafter. For the re-opening of previously issued bonds, successful bidders will be required to pay a price corresponding to the yield-to-maturity bid that clears the auctioned volume, plus any accrued interest. Interest on these bonds is payable semi-annually, with the principal sum to be repaid on maturity.

The DMO emphasized that FGN bonds, similar to all other Federal Government securities, are fully backed by the government’s assurance and are secured against Nigeria’s general assets. These bonds are considered eligible securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities under the Company Income Tax Act and Personal Income Tax Act, providing tax exemptions and are attractive to pension funds and other investors. Furthermore, these bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for banks’ liquidity ratio calculations.