The Debt Management Office (DMO) has announced plans to reopen two federal government bonds worth N300 billion for auction, with subscriptions available at N1,000 per unit.

According to a statement released on Tuesday, the bonds will be auctioned on March 24, with settlement scheduled for March 26. Investors can subscribe at a minimum of N50,001,000, with additional investments in multiples of N1,000.

The bonds offer semi-annual interest payments, and the principal will be repaid in full upon maturity. For reopenings of previously issued bonds, successful bidders will pay a price based on the yield-to-maturity bid that clears the auction volume, plus any accrued interest.

Bond Details and Interest Rates

DMO outlined the details of the two offerings:

• A five-year bond maturing in April 2029, with an interest rate of 19.30% per annum.

• A nine-year bond maturing in May 2033, offering 19.89% per annum.

Like all federal government securities, the bonds are backed by the full faith and credit of the Nigerian government and qualify as approved investments under the Trustees Investment Act.

Additionally, they are classified as government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemptions and suitable for pension funds and other institutional investors.

The bonds will also be listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for banks’ liquidity ratio calculations, the DMO added.