FG To Raise N130bn From Bond In July

The Federal Government has offered N130bn worth of bond across different tenures, a move to raise funds from the domestic market.

Recall that the Federal Government had in April said it would turn to the domestic market to raise funds to meet its fiscal deficit.

The government made the offer for subscription through the Central Bank of Nigeria on the authority of The Debt Management Office.

The apex bank made the call on Monday as part of the FGN monthly Bond Auction for July.

According to the CBN, the auction date will be July 22, 2020, while the settlement date was scheduled for July 24, 2020.

A breakdown of the amount revealed that N25bn worth of bond at 12.50 per cent rate was offered with a tenure of 6 years up to January 2026.

The CBN also offered for subscription a N35bn FGN bond of 12.50 per cent rate with a tenure up to March 2035.

The Alec bank also offered FGN bond of N35bn with a tenure upto July 2045.

Also an FGN bond worth N35bn with rate at 12.98 per cent with tenure up to March 2050 was equally offered for subscription on behalf of the Federal Government.

Summary of the offer revealed that units of sales would be N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

The apex bank said the interest would be payable semi-annually, while nothing that regarding the redemption, the principal repayment would be on the maturity date.