FG to auction N70b bonds

The Debt Management Office says the Federal Government is to auction by subscription bonds worth N70 billion on December 19.
The DMO said in a circular issued via its website on Wednesday in Abuja that the five-year re-opening bonds of N20 billion, which would mature in April 2023, was offered at 12.75 per cent.
The seven-year re-opening bonds of N15 billion, to mature in March 2025, would be auctioned at 13.53 per cent.
The circular added that the 10-year re-opening bonds of N35 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.
According to the DMO, the unit price of the bonds is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
News Agency of Nigeria reports that the bonds are backed by the full faith and credit of the Federal Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, so as create a benchmark for corporate issuance and fund its budget deficit.