By Mbakaan Kwen,
The federal government is set to auction N140 billion worth of bonds to investors later this month. According to a circular on the debt management office’s website, the offer will re-open on June 21, 2017.
It highlighted that, N40,000,000,000 for a duration of five years will be issued at the rate of 14.50 per cent, N50,000,000,000 for a duration of ten years will attract a rate of 16.2884 per cent and N50,000,000,000 for a duration of twenty year will be at the rate of 16.2499 per cent.
FGN bonds which are backed by the full faith and credit of the federal government of Nigeria and are charged upon the general assets of Nigeria will pay interest semi-annually.
FG bonds are qualified as securities in which trustees can invest under the Trustee Investment Act. 2 and are government securities which qualify as liquid assets for liquidity ratio calculation for banks.
Similarly, the FG savings bonds which was opened for subscription on 5-9 June, 2017 was allotted N271.56 million at the rate of 13.189 per cent for a period of two years and it successfully recorded a subscription of 425 while N335.70 million was allotted for a period of three with a successful subscription of 496 at the rate of 14.189 per cent.