Omotayo Adigun
The Debt Administration Workplace (DMO) has introduced the reopening of two Federal Authorities of Nigeria (FGN) bonds value a mixed ₦350 billion, with subscriptions set to open at ₦1,000 per unit.
In a press release launched Wednesday, April 23, 2025, the DMO stated the public sale will happen on April 28, with settlement scheduled for April 30. The bonds are geared toward each retail and institutional traders, providing enticing returns and tax benefits.
The providing is cut up into two tranches:
₦200 billion in a five-year bond maturing in April 2029, with a coupon price of 19.30% every year.
₦150 billion in a nine-year bond maturing in Could 2033, with a coupon price of 19.89% every year.
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Every bond unit is priced at ₦1,000, with a minimal subscription of ₦50,001,000, and extra purchases in multiples of ₦1,000. Though the coupon charges are mounted, profitable bidders pays a worth that displays the yield-to-maturity decided at public sale, plus any accrued curiosity.
The DMO emphasised that curiosity will probably be paid semi-annually, whereas the principal will probably be repaid in full at maturity. These bonds qualify as trustee investments beneath the Trustee Funding Act and luxuriate in tax exemptions beneath the Firm Earnings Tax Act (CITA) and the Private Earnings Tax Act (PIA) for eligible traders, together with pension funds.
The bonds are listed on the Nigerian Alternate Restricted (NGX) and the FMDQ OTC Securities Alternate, and are acknowledged as liquid property for banks’ liquidity ratio necessities. They’re totally backed by the credit score and normal property of the Federal Authorities.
The DMO urged traders to subscribe by way of Major Vendor Market Makers (PDMMs). This public sale follows an analogous reopening in March, the place ₦300 billion value of FGN bonds have been provided.
