FG to auction long-term bonds on June 17 | Dailytrust

FG to auction long-term bonds on June 17

The Debt Management Office (DMO) will offer a five, 15, and 30-year bond 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 N150bn bond to include a N40bn five-year re-opening bond that will mature in April 2023, a N50bn 15-year reopening bond that will mature in April 2035 and N60bn 30-year bond expected to mature in April 2050.

The document also showed that the auction date is June 17, 2020 and the settlement date is June 19, 2020.

The DMO had earlier announced May 20 as the date for the offering of the long-term bond, while the settlement date had been fixed for May 22.

It had 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 issued on May 14 stated.

“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 Sub-National Governments in Nigeria,” it added.