The Federal Government, through the Debt Management Office, has announced plans to reopen two tranches of its savings bonds worth a combined N350 billion for public subscription.

The bond auction is scheduled to hold on April 28, 2025.

According to a statement released by the DMO on Tuesday, each bond will be offered at N1,000 per unit, with a minimum subscription set at N50,001,000 and in multiples of N1,000 thereafter. The settlement date for successful bids is slated for April 30, 2025.

The offer includes two separate tranches. The first is a N200 billion five-year bond maturing in April 2029, which carries an annual coupon rate of 19.30%. The second tranche is a N150 billion nine-year bond, maturing in May 2033, with an annual interest rate of 19.89%.

The DMO noted that the bonds are reopenings of previously issued instruments, meaning the coupon rates have already been fixed. Successful bidders will pay a price that reflects the yield-to-maturity bid that clears the auction, along with any accrued interest.

Interest payments on the bonds will be made semi-annually, while the principal will be repaid in full upon maturity.

Highlighting the regulatory advantages, the DMO stated that the bonds are classified as government securities under the Company Income Tax Act and Personal Income Tax Act, qualifying them for tax exemptions for pension funds and other investors. They are also listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.

Additionally, the bonds are recognized as liquid assets for calculating banks’ liquidity ratios and are fully backed by the credit and general assets of the Federal Government of Nigeria.