Bonds & Fixed Income | |
Bonds & Fixed Income | |
2977 VIEWS | |
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Wednesday,
October 18,
2017 9.46AM / 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 – 14.50% FGN JUL 2021 (5-Year
Re-opening)*
N50,000,000,000 – 16.2884% FGN MAR 2027 (10-Year
Re-opening)*
Auction Date: October 25, 2017
Settlement Date: October 27,
2017
SUMMARY OF THE OFFER
ISSUER:
Federal Government of Nigeria (“FGN”)
UNITS OF SALE:
N1,000 per unit subject to a minimum
subscription of N10,000 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 accrued interest from the original issue date.
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
HOW TO INVEST
Kindly download, print and complete the tender form. The duly completed form should be scanned and sent to: ievbosomon@dunnlorenmerrifield.com or bbhadmus@dunnlorenmerrifield.com
* (1) The
DMO reserves the right to alter the amount allotted in response to market
conditions
* (2)
Retail Investors are encouraged to participate