The Debt Management Office (DMO) has released the subscription process for two-year and three-year Federal Government of Nigeria bonds for October with an interest rate of up to 13.4 percent.
This announcement was made in a statement on the DMO’s official website. The subscription period is set to last for five days, running from November 6th to November 10th, 2023.
The bonds will mature on November 15th, 2025, and November 15th, 2026, for the two-year and three-year bonds respectively.
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”
The interest rate for the two-year bonds stands at 12.464 percent per annum, while the three-year bonds offer an interest rate of 13.464 percent per annum.
The statement also specifies the settlement date for both bond offerings as November 15th, 2023, with coupon payments scheduled for February 15, May 15, August 15, and November 15.
These bonds will accrue interest payments every quarter.
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 N50,000,000.”
FGN bonds are fully backed by the federal government of Nigeria.
The DMO advises interested investors 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).