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The Federal Government, through the Debt Management Office (DMO) has put N150 billion bonds on offer for subscription for July. The offer announced by the DMO via an Offer Circular yesterday, was in three tranches of N50 billion each.
The first is a 10-year reopening bond to be offered at the rate of 13.98 percent with a maturity date of February 2028.
The second tranche of N50 billion with 12.40 percent rate has March 2036 (20 years) at maturity, while the third tranche of N50 billion with 12. 98 percent (30-year re-opening) has March 2050 maturity.
According to the circular, the auction date would be Monday, July 19, 2021, with a settlement date of Friday, July 23, 2021.
Transactions would be at N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
“For re-openings of previously issued bonds, (where the coupon is already set), 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,” the DMO said.
