DMO reopens FGN bonds subscription offer at 15.70%

The Debt Management Office (DMO) has reopened subscription offers for 10year, 15year and 30year FGN bonds for April 2029, June 2033, June 2038 and June 2053 at 14.55%, 14.70%, 15.45% and 15.70% respectively.

This announcement was made in a statement on the DMO’s official website. The auction date is October 16th while the settlement date is October 18th.

The statement reads,

  • “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds”

Interest Rates and Tenure:

The federal government hopes to raise N90bn for two 10-year bonds at interest rates of 14.55% and 14.70% respectively.

For the 15-year and 30-year tenure bonds, the interest rate is 15.45% and 15.70% respectively.

Units of Subscription:

The DMO outlines the units of subscription as

  • “N1,000 per unit, subject to a minimum subscription of N5,000, and subsequent multiples of N1,000, with a maximum subscription limit of N50,001,000.”

Interested investors are encouraged to contact stock brokerage firms listed as authorized agents by the Debt Management Office (DMO) and the bonds are traded on the NGX (Nigerian Exchange Group).

It is important to note that FGN bonds are fully backed by the federal government of Nigeria.

The DMO encouraged interested investors to contact Primary Dealer Market Makers (PDMMs) such as First Bank, Access Bank, United Bank for Africa Plc, Zenith Bank Plc, etc.

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