The Debt Management Office (DMO) of Nigeria has released the FGN Bonds Issuance Calendar for the first quarter, 2022. The circular sighted by Investogist shows that there will be only one new issue, with five re-opened ones.
Auction dates are set at 19th January, 16 February and 23rd March. Further details of the bond issuance are as per below;
- 19 January: Two bonds will be issued; 12.50% FGN Jan 2026 (re-opening) with 4 year term-to-maturity and FGN Jan 2042 (New Issue) with 20 years term-to-maturity. Both bonds have a range amount on offer between N70-80 billion.
- 16 February: Two bonds will be issued; 12.50% FGN Jan 2026 (re-opening) with 3 years, 11 months term-to-maturity and FGN Jan 2042 (Re-opening) with 19 years, 11 months term-to-maturity. Both bonds have a range amount on offer between N70-80 billion.
- 23 March: Two bonds will be issued; 12.50% FGN Jan 2026 (re-opening) with 3 years, 10 months term-to-maturity and FGN Jan 2042 (Re-opening) with 19 years, 10 months term-to-maturity. Both bonds have a range amount on offer between N70-80 billion.
Reopening a Bond issue is issuing additional amounts of a previously issued Bond. Reopened Bonds have the same maturity date and interest rate as the original bonds, but they are sold on different dates and usually at a different price.
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FGN Bonds is the “Federal Government of Nigeria (FGN) Savings Bonds launched by The Debt Management Office (DMO) of Nigeria on behalf of the Federal Government of Nigeria. It was launched to help enhance the savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to National Development; as well as the comparatively favourable returns available in the capital market.
FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders.
To learn more about FGN Bonds and how to invest in it, read: A Beginners Guide to Investing in the Nigerian Financial Market: Fixed Income Assets.
The DMO was established on 4th October, 2000 to centrally coordinate the management of Nigeria’s debt, which was hitherto being done by a myriad of establishments in an uncoordinated fashion.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
