Nigerian govt to issue N20 billion 30-year bond April 24

Director-General, Debt Management Office, DMO, Patience Oniha
Director-General, Debt Management Office, DMO, Patience Oniha

The Debt Management Office (DMO), says the federal government will on April 24, issue a 30-year bond for the first time.

The DMO said in a circular on its website on Wednesday in Abuja, that the N20 billion 30-year paper would mature in April 2049.

Other bonds on offer are a 10-year new issue of N40 billion to mature in April 2029 and a five-year re-opening of N40 billion to mature in April 2023, which was offered at 12.75 per cent.

The circular, however, did not indicate the interest rates for the new issues.

Patience Oniha, the Director-General, DMO had at a news conference on April 4, revealed plans by the Federal Government to issue the 30-year paper.

She said the bonds were considered, given the relatively low interest rates compared to 2017 levels of more than 18 per cent.

“The issuance of the bond will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the federal government.

“Another area of focus will be the management of risks associated with the debt stock to mitigate debt service costs.”

She added that the 30-year issue would enable government raise long-term capital for infrastructure, serve as benchmark for private sector raising of long-term investment capital.

It would also reduce short-term debt and deepen the Life Insurance sector in particular.

According to DMO, units of sale is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

The News Agency of Nigeria (NAN) reports that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

(NAN)

Support PREMIUM TIMES' journalism of integrity and credibility

 

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: This space is available for a Text_Ad.. Call Willie on +2347088095401 for more information


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.