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Invest in FGN Monthly Bond Auction – November 2017

Proshare

Friday, November 17, 2017/ 5.15PM / 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-Yr Re-opening)*

N50,000,000,000 - 16.2884% FGN MAR 2027 (10-Yr Re-opening)* 

Auction Date: November 22, 2017

Settlement Date: November 24, 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

(1) The DMO reserves the right to alter the amount allotted in response to market conditions

* (2) Retail Investors are encouraged to participate 

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