The federal government has announced the issuance of a $500 million domestic dollar bond, available for subscription starting August 19, 2024. This bond features an annual interest rate of 9.75% and is scheduled to mature in 2029.
The subscription period for this bond will close on August 30, 2024. Investors will receive confirmation of their purchases and begin accruing interest from the settlement date, which is September 6, 2024.
Structured as a five-year investment, the bond offers semi-annual coupon payments. Investors can buy units starting from a minimum of $1,000 each, with an initial minimum subscription of $10,000 (10 units). Additional investments can be made in multiples of $1,000.
This bond is eligible under various legal frameworks, including the Trustee Investment Act and the Pension Reform Act, making it accessible for trustees and Pension Fund Administrators. It also qualifies as a government security under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), providing tax exemption benefits for pension funds.
The bond will be listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange Limited, enhancing its liquidity and making it more accessible for investors.
