The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced it will offer N80 billion worth of FGN bonds for subscription via auction on July 28, 2025.
According to a circular published on the DMO’s website on Wednesday, the bonds will be settled on July 30, 2025.
According to Nairametrics, the offer includes two re-openings of existing FGN bonds.
The first is a N20 billion offer for the 19.30% FGN APR 2029 bond with a five-year tenor.
The second is a N60 billion offer for the 17.95% FGN June 2032 bond, which has a seven-year maturity.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000.
Additional investments must be made in multiples of N1,000, and investors can subscribe up to N50 million.
Because these are re-openings of previously issued bonds, the interest rate will be determined by the yield-to-maturity bid that clears the total volume on offer at auction.
Interest will be paid semi-annually, and the principal will be repaid in full at maturity through a bullet repayment.
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The N80 billion offered for July is lower than the N100 billion offered in June.
In that auction, the five-year re-opening bond with a 19.30% coupon rate and maturity date of April 17, 2029 received 30 bids totaling N41.685 billion in subscriptions.
However, only two bids were successful, and N1.050 billion was allotted.
The second instrument in June’s auction, a newly issued seven-year bond with a 17.95% coupon maturing on June 25, 2032, attracted 209 bids and N561.170 billion in total subscriptions.
Out of those, 41 bids were accepted, and N98.950 billion was allotted.
The DMO confirmed that the bond issuance complies with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
Interested investors are advised to apply through any of the authorised Primary Dealer Market Makers (PDMMs), which include Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, and Zenith Bank Plc.
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