The Federal Government of Nigeria has announced the reopening of two existing bonds through the Debt Management Office (DMO). The offer is valued at N350 billion, priced affordably at N1,000 per unit, targeting a broader pool of investors, particularly retail investors.
This initiative is part of the government’s strategy to mobilize long-term capital and promote financial inclusion, offering a safe investment opportunity to Nigerians.
Key Details of the Bond Auction
The auction will be held on April 28, 2025, with settlement by April 30, 2025. The bonds being offered are:
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Five-Year FGN Bond
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Maturity: April 2029
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Interest Rate: 19.30%
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Offer Size: N200 billion
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Nine-Year FGN Bond
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Maturity: May 2033
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Interest Rate: 19.89%
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Offer Size: N150 billion
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Interest payments will be made semi-annually until maturity when the principal will be repaid in full.
Investment Requirements
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Unit Price: N1,000
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Minimum Subscription: N50,001,000
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Additional Increments: In multiples of N1,000
The bonds are being reopened with fixed coupon rates, but the price will depend on the yield-to-maturity bid from successful bidders.
Investor Benefits
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Guaranteed Returns: Fixed interest payments ensure stable income.
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Safety: Backed by the full faith and credit of the Federal Government.
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Tax Benefits: Potential tax exemptions under the CITA and PITA.
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Regulatory Recognition: Bonds are recognized for inclusion in trustee portfolios and accepted by commercial banks for liquidity ratio calculations.
How to Participate
Investors are encouraged to contact their Primary Dealer Market Makers (PDMMs) to participate in the auction. PDMMs are licensed by the DMO to assist with the auction process, bid strategies, and market analysis.
Conclusion
The N350 billion bond auction represents an exciting opportunity for Nigerians to participate in national development while earning competitive returns. This initiative is especially valuable in times of market volatility, offering a safe, stable investment option.
