The Federal Authorities has opened presents for its dollar-denominated home bond of $500m at an rate of interest of 9.75 per cent each year for a tenor of 5 years, set to mature in 2029.
The federal government additionally barred potential buyers from making funding funds via money.
The Debt Administration Workplace (DMO) in an announcement posted on its web site, stated: “Cost shall solely be made via the banking system and digital transfers into the designated accounts.
“No money deposits might be accepted underneath this transaction, besides the place such money deposits have been made into the domiciliary account for not lower than 30 days earlier than the date of this supply.”
The greenback bond is the primary of its variety within the nation, with the bond providing bullet reimbursement at maturity in US {dollars} and full reimbursement of the principal quantity on the finish of the five-year time period.
The assertion indicated that Nigerian residents, Nigerian people with financial savings overseas, Nigerians within the Diaspora, and Certified Institutional Traders had been listed as eligible buyers.
The supply has a gap date of August 19, a time limit of August 30, and a settlement date of September 6, 2024, giving buyers a adequate window to take part on this providing.
The bond is structured as a five-year funding, with coupon funds made semi-annually.
Traders should buy items at a minimal of $1,000 every, with an preliminary minimal subscription set at $10,000 (10 items). Subsequent investments might be made in multiples of $1,000.
The redemption of the bond will happen via a bullet reimbursement on the finish of the five-year time period, making certain that buyers obtain their principal in full upon maturity.
The bond qualifies as a safety underneath a number of authorized frameworks, together with the Trustee Funding Act and the Pension Reform Act, permitting trustees and Pension Fund Directors to put money into it.
Moreover, it qualifies as a authorities safety underneath the Firm Earnings Tax Act and the Private Earnings Tax Act, providing tax exemption advantages for pension funds.
The bond might be listed on the Nigerian Trade Restricted and FMDQ OTC Securities Trade Restricted, enhancing its liquidity and accessibility for buyers.
United Capital Plc is the lead issuing home and coordinator, with Meristem Capital Restricted, Stanbic IBTC Capital Restricted, and Vetiva Advisory Providers Restricted additionally serving as issuing homes.
The bond is additional supported by a community of major supplier market makers and receiving banks, together with Entry Financial institution Plc, Citibank Nigeria Ltd., and Warranty Belief Financial institution Ltd., amongst others.
