The Federal Government has made three FGN bonds worth N150 billion available for subscription at a price of N1,000 per unit through the Debt Management Office, or DMO.

The first offer is an April 2029 FGN bond worth N70 billion with a five-year reopening interest rate of 19.30 percent per annum, according to a statement released by the DMO on Monday.

The second sale is a N50 billion FGN bond due in February 2031, with an interest rate of 18.50% annually (reopening after seven years).

Additionally, there is the N30 billion May 2033 FGN bond, which has a nine-year reopening period and an interest rate of 19.89 per year.

The FGN bonds are being offered, according to the DMO, at N1,000 per unit with a minimum subscription of N50 million and in multiples of N1,000 after that.

It stated that winning bidders for reopenings of previously issued bonds will pay a price equal to the yield-to-maturity bid that settles the volume up for auction plus any interest that has accumulated on the instrument.

The settlement date is September 25, and the auction date is September 23.

Semi-annual interest payments are made, and the principle amount is repaid in full at maturity, according to the statement.

It stated that FGN bonds are secured by the Federal Government of Nigeria’s entire faith and credit and are denominated in Nigerian general assets.

According to the Trustee Investment Act, they are securities that trustees are permitted to invest in.

“Be eligible for tax exemption for pension funds and other investors by meeting the requirements of the Company Income Tax Act and Personal Income Tax Act as government securities.

The DMO stated, “They are listed on FMDQ OTC securities Limited and Nigerian Exchange Limited.”

It stated that FGN bonds are secured by the Federal Government of Nigeria’s entire faith and credit and are denominated in Nigerian general assets.