By Our Reporter
The Debt Management Office (DMO) will auction three Federal Government bonds valued at N150bln at N1, 000 per unit.
This is contained in a statement obtained on Wednesdayfrom the DMO’s website.
The statement noted that the three bonds were valued at N50 billion each with interest rates of 16.23 per cent, 12.50 per cent and 9.80 per cent respectively.
It listed the auction date as April 21, while settlement date is April 23, adding that minimum units for sale were N50,001 thousand and in multiples of N1,000 thereafter.
“For reopenings 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 rate on the instrument”, itstated.
It noted that interest rates would be paid semi-annually with bullet repayment on the maturity date.
The statement noted that the bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“It also qualifies as Government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds and other investors
“It is listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange,” it said.
It pointed out that all Federal Government bonds qualified as liquid assets for the calculation of liquidity ratio for banks.
It assured that the bonds were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria, adding that interested investors could contact designated banks.
The DMO was established on October 4, 2000 to centrally coordinate the management of Nigeria’s debt which was hitherto being done by several establishments.
