The Nigerian government has offered one FGN bond valued at $500 million for subscription to interested investors.... CLICK TO READ THE FULL NEWS HERE▶▶
The Debt Management Office (DMO), in a statement on Monday, August 19, 2024, disclosed that it is a five-year domestic FGN dollar bond due in 2029, at an interest rate of 9.75 per cent per annum.
The opening date for the offer is August 18, 2024 with the closing date scheduled for August 30, 2024, while the settlement date is September 6.
DMO stated: “It is offered at 1,000 dollars per unit subject to a minimum subscription of 10,000 dollars (10 units), and in multiples of 1,000 dollars thereafter.
“Coupon payment is semi-annually, while bullet repayment (principal sum) is on maturity date.”
Some eligible investors that are listed are Nigerian residents, Nigerians with savings abroad, Nigerian diaspora, and qualified institutional investors.
It added: “Payment shall only be made through the banking system and electronic transfers into the designated accounts.
“No cash deposits will be accepted under this transition, except where such cash deposits have been made into the domiciliary accounts for not less than 30 days prior to the date of offer.”
The DMO said that the dollar-denominated FGN bond was backed by the full faith and credit of the Federal Government of Nigeria, and granted liquid asset status by the apex bank, CBN.
“It qualifies as securities in which trustees can invest under the Trustee Investment Act.
“Qualifies as securities in which the Pension Fund Administrators can invest under the Pension Act.
“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors,” it said.
It said that the dollar-denominated FGN bond would be listed in the Nigerian Exchange Limited and FMDQ OTC Securities Exchange Limited.
