The federal government, through the Debt Management Office (DMO), has concluded plans to raise N120 billion through the auction of two federal government bonds.
The auction, scheduled for December 16, 2024 (today) will offer investors an opportunity to subscribe to reopened debt instruments, with settlement set for December 18, 2024.
According to Investopedia, a government bond auction is the process of selling short- and long-term government bonds to investors in an attempt to minimise the cost of financing national debt.
The DMO in an announcement said the bonds were being offered at N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
The bond offering comprises a 19.30 per cent April 2029 bond, a five-year reopening valued at N60 billion, and an 18.50 per cent February 2031 bond, a seven-year reopening also valued at N60 billion.
Both instruments are reopenings of previously issued bonds, allowing investors to participate at current market yields.
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