DMO to auction long term bonds on May 20

The Debt Management Office (DMO) will offer five, 15 and 30 year bonds at 12.75 percent, 12.50 percent and 12.98 percent interest rates respectively.

This was contained in a document published on the Debt Management Office (DMO) website on Tuesday.

The document showed the breakdown of the N60 billion bond to include a N20bn five-year reopening bond that would mature in April 2023, a N20bn 15-year reopening bond that would mature in April 2035 and N20bn 30-year bond expected to mature in April 2050.

The document also showed that the auction date is May 20, 2020 and the settlement date is May 22, 2020.

The DMO also published revised external and domestic borrowing guidelines for the federal government, state governments, the FCT and their agencies.

It said a review of the previous guidelines was published in 2012, and the guidelines became necessary to reflect recent developments in the fiscal operations of Government, especially in the area of Public Debt Management.

The DMO stated: “In line with the provisions of the Debt Management Office (Establishment, Etc.) Act, 2003, Section 33, which empowers the Debt Management Office (DMO) to issue Guidelines for the effective implementation of its functions, the DMO has released the Revised External and Domestic Borrowing Guidelines for the Federal Government, State Governments, and the Federal Capital Territory (FCT), and their Agencies” the document said.

“A review of the Guidelines (which was last issued in the year 2012), became necessary to reflect recent developments in the fiscal operations of Government, especially in the area of Public Debt Management”

“The Guidelines are derived from provisions in extant legislations, principal of which are: The Constitution of the Federal Republic of Nigeria, 1999 (as amended), the Debt Management Office (Establishment, Etc.) Act, 2003, the Fiscal Responsibility Act, 2007, and the Investments and Securities Act, 2007. The Guidelines also incorporate provisions in the Fiscal Sustainability Plan – Fiscal Framework for SubNational Governments in Nigeria” it added.