By Chioma Iruke
The Nigerian Government intends to auction N150bn bonds for subscription in September, the country’s Debt Management Office (DMO) has said.
A circular by the DMO on its website, showed that the breakdown of bonds comprised of three bonds worth N50bn each.
They are 10-year re-opening bond to be offered at the rate of 13.98 percent and to mature in February 2028; a 20- year reopening bond to be offered at 12.40 percent and mature in March 2036; and the third and longest bond, which is a 30-year reopening bond to be offered at 12.98 percent and mature in March 2050.
According to the DMO, the bonds, which will be auctioned on September 22, have a settlement date of September 24.
The units of sale are N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
According to the circular, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act, and as a liquid asset for liquidity ratio calculation for banks.
The bonds also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for Tax Exemption for Pension Funds, amongst other investors.
