DMO Launches N1tn Bond Subscription with N50m Minimum

The Debt Management Office (DMO) has announced the opening of a subscription for two Federal Government of Nigeria bonds, totaling N1 trillion. The first bond is a new 10-year FGN bond valued at N400 billion, maturing in September 2036.

The second bond is a N600 billion reopening of a 15-year FGN bond due in 2038, which carries a coupon rate of 15.45 percent per annum. The subscription offer commenced on September 14, with a settlement date of September 16.

The DMO specified that the bonds are available at N1,000 per unit, with a minimum subscription requirement of N50 million, and additional subscriptions in multiples of N1,000. Interest on the bonds will be paid semi-annually, with a bullet repayment on the maturity date.

The DMO confirmed that these bonds are backed by the full faith and credit of the Federal Government and qualify as liquid assets for banks' liquidity ratio calculations.