,By DMO,
The Central Bank of Nigeria on the authority of The Debt Management Office on behalf of the Federal Government Of Nigeria Offers for Subscription by Auction and is authorized to receive applications for
N50,000,000,000 – 12.75% FGN APR 2023 (5-Yr Re-opening)*
N50,000,000,000 – 14.55% FGN APR 2029 (10-Yr Re-opening)*
N50,000,000,000 – 14.80% FGN APR 2049 (30-Yr Re-opening)*
Auction Date: October 23, 2019
Settlement Date: October 25, 2019
SUMMARY OF THE OFFER
ISSUER: Federal Government of Nigeria (“FGN”)
UNITS OF SALE: N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter
INTEREST RATE: For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument
INTEREST PAYMENT: Payable semi-annually
REDEMPTION: Bullet repayment on the maturity date
STATUS:
1. Qualifies as securities in which trustees can invest under the Trustee Investment Act
2. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors
3. Listed on the Nigerian Stock Exchange
4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks
SECURITY: FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria
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Min. unit aggregated subscription per retail investor under TRW Stockbrokers Limited for participation in the bond tender is N1,000,000 and in multiples of N1,000.00
TRW Stokbrokers Ltd will transfer retail investors’ purchased FGN treasury bonds from FMDQ to their respective CSCS Accounts (which acts as a digital custodian, free-of-custodian charges) via the bond trading section of NGSE.