The Debt Management Office (DMO) has released its FGN bond issuance calendar for the third quarter of 2022. The document which is published on the DMO website, contains a plan for raising between N620 billion and N720 billion in the next three months.
As stated in a press release, the issuance for the quarter under review is slated to hold on July 18, August 15 and September 19, 2022.
All bonds to be issued are reopening issuances and on July 18, bonds will be offered for subscription in three tranches of 10year, 10 year, 20 year original tenor.
Below is a breakdown of the calendar:
The DMO has assured that the vonds
What you should know about FGN Bonds
- FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due.
- When you buy FGN Bonds, you are lending to the FGN for a specified period of time. The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk-free debt instrument.
- According to the DMO, the bonds have no default risk, meaning that it is absolutely certain your interest and principal will be paid as and when due. The interest income earned from the securities is tax exempt.
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