The Federal Government of Nigeria will auction by subscription N100 billion worth of bonds on March 27, 2019.

The Debt Management Office (DMO)  in a circular on its website on Tuesday explained  that the five-year re-opening bonds of N40 billion to mature in April 2023 was offered at 12.75 per cent.It said that the seven-year re-opening bonds also of N40 billion to mature in March 2025 would be auctioned at 13.53 per cent.

It added that the 10-year bonds, also re-opening, of N20 billion which would be due in Feb. 2028, would be auctioned at 13.98 per cent.

According to the DMO, units of sale is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

The DMO explained that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.