DMO Reopens FGN Bonds, Plans N720bn Borrowing Target

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The Debt Management Office (DMO) says it will reopen federal government of Nigeria (FGN) bonds valued at between N70 billion to N80 billion on September 19, 2022.

The development follows a review of its bonds issuance calendar for the third quarter of 2022.

A bond is a fixed income instrument that represents a loan made by an investor to a borrower — typically corporate or government.

According to the NAN, the agency’s revised calendar is scheduled to raise about N720 billion through some reopened FGN bonds.

DMO Reopens FGN Bonds, Plans N720bn Borrowing Target

“On September 19, the DMO will reopen the March 2025 FGN bond valued at between N70 billion to N80 billion, at the rate of 13.53 per cent per annum. The maturity period will now be two years, four months,” the agency said.

“On the same date, the office will reopen the April 2032 FGN bond valued at between N70 billion to N80 billion, at a 12.50 percent interest rate per annum. Its Term-to-Maturity will be nine years, seven months.

“On September 19, the DMO will reopen a March 2037 FGN bond valued at between N70 billion to N80 billion, at an interest rate of 16.24 percent per annum. It has a Term-to-Maturity of 14 years, seven months, and an original tenor of 20 years.”

On August 15, the DMO reopened two 2032 FGN bonds, a march 2025 FGN bond, valued at between N70 billion to N80 billion each and an interest rate between 12.50 and 13.53 percent per annum.

The maturity period was between two to 19 years.