DMO To Offer N60 Billion Worth Of Bonds On June 27
If you are an investor looking for some long-term investment in securities, an opportunity has come your way.
The Federal Government has offered for subscription by auction 60-billion-naira worth of bonds in its June 27 auction, the Debt Management Office (DMO) announced.
The offer circular obtained from its website on Tuesday, stated that it would sell 20 billion naira of a five-year re-opening issue maturing in April 2023 at 12.75%.
It would also sell 20 billion-naira seven year re-opening bond to mature in March 2025 at 13.53% and another 20 billion naira 10-year re-opening at 13.98% to mature in February 2028.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk free debt instrument.
They have no default risk, meaning that it is absolutely certain your interest and principal will be paid as and when due.
The interest income earned from the securities are also not taxed.
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