The Nigerian government through the Debt Management Office has announced the issuance of November 2024 bond with plans to raise ₦120 billion. This represents a 33.3% decline compared to the amount raised in October.
Also, it is one of the lowest amounts offered this year as the government seek to slow down on its bond issuance. The decline in amount indicates a deviation in borrowing strategy, reduced funding needs and improved revenue inflow.
The November 2024 bond comprises re-opening of existing bonds such as the 19.30% April 2029 (5-year Re-opening) and the 18.50% February 2031 (7-year Re-opening), with each valued at N60 billion.
The bond auction will be held on November 18, 2024 with the settlement scheduled for November 20th. The units will be offered at ₦1,000 each subject to a minimum subscription of ₦50,001,000, in multiples of ₦1,000.
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Government issued bonds have been gaining traction from investors in recent times due to their attractive coupon rates and long term investment yields. Also, they are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, ensuring tradability and liquidity.
In addition, these bonds enjoy tax exemptions under the Company Income Tax Act and the Personal Income Tax Act, making them attractive for a variety of investment opportunities.
