Ndubuisi Francis in Abuja
The Debt Management Office (DMO) has
explained that the recent introduction of FGN 30-year bond was a design to increase the tenor of bonds available in the market and help create securities that would suit investors’ activities.
The 30-year bond was issued in April as the usual FGN bond auction.
The DMO Director General, Ms. Patience Oniha, who spoke at a press conference in Abuja, weekend, said part of the considerations for the introduction
was that while it borrows on behalf of the government subject to necessary approvals, the government, through its borrowing activities also supports in market development trying to create securities that investors want to invest in to match their activities.
“We introduced the 30-year bond to increase the tenor of bonds available in the market.
The longest tenure we’ have had before now was the 20-year FGN bonds.
The 30-year bond benefits government in two ways — one, it extends the tenor for proper management of our maturity so that debt service is easier and smoother.
“But more importantly it’s actually the best form of money to use to finance infrastructure which the government is focused on to support the recovery that we have achieved, managing liabilities and financing infrastructure,” she added.