Nigeria: FG Issues $500 Million Five-Year Domestic Dollar Bond At 9.75 Percent

21 August 2024
Daily Trust (Abuja)
By Sunday Michael Ogwu

The federal government has officially issued a $500 million domestic dollar bond, opening for subscription on August 19, 2024.

This bond, part of the government's financing initiatives, will carry a 9.75% per annum interest rate and is set to mature in 2029.

The auction for this bond will remain open until August 30, 2024, giving investors a sufficient window to participate in the offering.

The settlement date, when investors will have their purchases confirmed and interest will begin accruing, is set for September 6, 2024.

The bond is structured as a five-year investment, with coupon payments made semi-annually.

Investors can purchase units at a minimum of $1,000 each, with an initial minimum subscription set at $10,000 (10 units). Subsequent investments can be made in multiples of $1,000.

The bond qualifies as a security under several legal frameworks, including the Trustee Investment Act and the Pension Reform Act, allowing trustees and Pension Fund Administrators to invest in it.

Additionally, it qualifies as a government security under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), offering tax exemption benefits for pension funds.

The bond will be listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange Limited, enhancing its liquidity and accessibility for investors.

Read the original article on Daily Trust.

Tagged:
Copyright © 2024 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.