Tuesday, January 18, 2022

DMO releases FGN Bond issuance calendar for Q1 2022

The Debt Management Office (DMO) of Nigeria has released its FGN bond issuance calendar for the first quarter of 2022. This is contained in a document released by the DMO on its website.

According to the press release, the issuance for the quarter under review will be held on 19th January, 16th February, and 23rd March 2022 respectively.

The breakdown of the calendar shows that the agency will be issuing a new FGN bond (FGN Jan 2042) with a maturity tenor of 20 years.

12.5% FGB Bond 2026 and a new issue of a 20-year FGB Jan 2042 bond will be issued on the 19th of January 2022. Similarly, in the next month, the 12.5% FGN Jan 2026 will be issued on 16th February 2022, alongside the FGN Jan 2042 20-year bond.

Also, on 23rd March 2022, the 12.5% FGN Jan 2026 bond will be reopened together with the FGN Jan 2042 20-year bond. Below is a snapshot of the calendar s released by the DMO.

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 are tax exempt.

 

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