Announcing the bond auction, the DMO listed the first offer
as a February 2028 FGN bond, valued at N90 billion at interest rate of 13.98
per cent per annum (10-year re-opening).
The second is an April 2032 FGN bond, valued at N90 billion
at 12.50 per cent interest rate per annum (10-year re-opening)
There is also an April 2037 FGN bond, valued at N90 billion,
at 16.24 per cent interest rate per annum (20-year re-opening).
The fourth offer is an April 2049 FGN bond, also valued at
N90 billion, at an interest rate of 14.80 per cent per annum (30- year
re-opening).
It announced that the auction date is Feb. 13, while
settlement date is Feb. 15.
According to the DMO, for re-opening 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.
“Interest is payable semi-annually, while bullet repayment
(principal sum) is on the maturity date.
“FGN bonds are backed by the full faith and credit of the
Federal Government of Nigeria and are charged upon the general assets of
Nigeria.
“They qualify as securities in which trustees can invest
under the Trustee Investment Act.
“They also qualify as government securities within the
meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption
for funds among other investors.
“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
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