By Opeyemi Issa InvestAdvocate

Lagos (INVESTADVOCATE)-The Federal Government of Nigeria (FGN) Monday issued Bonds worth N50 billion by way of Auction.

This is contained in the March 2012 FGN Bonds Circular obtained by www.investadvocateng.com.

According to the Circular, the Central Bank of Nigeria (CBN) on the authority of the Debt Management Office (DMO) and on behalf of the Federal Government is issuing N20,000,000,000 – 7.00% FGN OCT 2019 (Re-opening 10-year Bond) and N30,000,000,000 – 16.39% FGN JAN 2022 (Re-opening 10-year Bond); indicating a N50 billion Bond offer.

The Circular affirmed that Auction Date is March 28, 2012 and Settlement Date is March 30, 2012.

A summary of the Offer shows that Units of Sale is N1, 000 per unit subject to a minimum subscription of N10, 000 and in multiples of N1, 000 thereafter.

While Interest Rate for Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.

Click here to download Circular