Attractive returns as FG offers N350bn bonds starting at N1,000 per unit

• The DMO is reopening 2 national authorities bonds for auction, totalling N350 billion, with subscriptions disposable astatine N1,000 per unit
• The bonds connection semi-annual involvement payments and main repayment astatine maturity, with a five-year enslaved offering 19.3% per annum
• The auction is scheduled for April 28, with colony by April 30, and investors are advised to participate

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

The Debt Management Office (DMO) has announced plans to reopen 2 federal government bonds for auction, with a full worth of N350 billion. The bonds volition beryllium disposable for subscriptions astatine N1,000 per unit.

These bonds are designed for retail investors, offering guaranteed quarterly involvement payments and the instrumentality of the main astatine maturity.

"N1,000 per unit": FG opens N350bn enslaved auction, invitation Nigerians to invest
Source: UGC

According to a statement released connected Wednesday, April 23, the auction volition instrumentality spot connected April 28, with the colony scheduled for April 30.

The DMO has outlined 2 enslaved tranches: the first, worthy N200 billion, is simply a five-year savings enslaved maturing successful April 2029, offering an yearly involvement complaint of 19.3%.

The 2nd tranche, valued astatine N150 billion, is simply a nine-year savings enslaved maturing successful May 2033, with an involvement complaint of 19.89% per annum.

The bonds volition beryllium priced astatine N1,000 per unit, with a minimum subscription of N50,001,000, and further subscriptions successful multiples of N1,000.

The DMO said:

“For Re-openings of antecedently issued bonds, (where the coupon is already set), palmy bidders volition wage a terms corresponding to the yield-to-maturity bid that clears the measurement being auctioned, positive immoderate accrued involvement connected the instrument.”

The bureau besides mentioned that the involvement connected the bonds volition beryllium paid doubly a year, with the main being repaid successful a lump sum connected the maturity date.

DMO explained that the savings bonds suffice arsenic securities, which trustees can put successful nether the Trustee Investment Act.

The bureau besides stated that each FGN Bonds are eligible arsenic liquid assets for calculating banks' liquidity ratios.

In addition, DMO clarified that the FGN Bonds are afloat backed by the Nigerian authorities and are secured against the country's wide assets.

The bureau advised each funny investors to scope retired to superior trader marketplace makers (PDMMs).

In March, DMO reopened 2 Federal Government bonds for auction, valued astatine N300 billion, disposable for subscriptions astatine N1,000 per unit.

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Source: Legit.ng