DMO opens subscription for FGN bonds at 12% interest rate

The Debt Management Office (DMO) has announced that it has opened offers for subscriptions for the two-year and three-year tenure of Federal Government of Nigeria bonds at 11.031% and 12.031% respectively per annum.

The disclosure was made via a circular on the website of the DMO today.

According to the statement, the offer of subscription will last for four days- between the 4th and 8th of September 2023.

The bonds are due on September 13, 2025, for the two-year bonds and September 13, 2026, for the three-year bonds.

The statement reads,

  • “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds.”

Interest rate and tenure of bonds

The interest rate for the two-year tenure stands at 11.031% per annum while that of the three-year tenure is 12.031%.

The statement from the office also provides the settlement date for both offers on September 13, 2023, and the coupon payment dates are December 13, March 13, June 13, and September 13. Interests on these bonds are paid quarterly.

Units of Subscription

According to the DMO, the units of subscription are as follows;

  • “N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.”

Interested investors are to contact stock brokerage firms listed as agents by the Debt Management Office (DMO) and the bonds are listed on the NGX.

FGN bonds are backed by the federal government of Nigeria.

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