The Debt Management Office has announced a new bond offering pegged at N300 billion. The new bonds, set to be auctioned on March 24, are aimed at financing the government’s budget deficit and infrastructure development.
The bonds will be sold at N1,000 per unit, with a minimum subscription of N50,001,000 and multiples of N1,000 thereafter.
Also, the interest is payable semi-annually, providing a steady income stream for investors. Additionally, the bonds will be repaid in full (bullet repayment) on their respective maturity dates.
The bonds can function as securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), making them tax-exempt for pension funds and other investors.
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In addition, they are listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, ensuring liquidity and transparency.
The 5-year bond offers an interest rate of 19.30%, while the 9-year bond provides a rate of 19.89%. These rates present competitive yields when compared to other fixed-income securities available in the market.
Additionally, these bonds are tax-exempt, which makes them especially appealing to pension funds and institutional investors looking for tax-efficient investment opportunities.
Supported by the complete faith and credit of the Federal Government of Nigeria, these bonds are regarded as low-risk investments. They are also secured by the general assets of Nigeria, which further strengthens their safety.
