Investors Stake Over N560bn On FG’s N100bn Bond

The Federal Government has raised ₦100bn through its June 2025 bond auction, according to the Debt Management Office (DMO).

The funds were raised from the sale of two bond instruments aimed at financing the national budget and managing domestic debt obligations for the 2025 fiscal year.

The auction featured two separate bonds, each with a face value of ₦50bn. The first offering was a five-year re-opening bond with a coupon rate of 19.30 per cent, maturing on April 17, 2029.

Despite recording strong interest with 30 bids amounting to ₦41.685bn, only two bids were successful, resulting in an allotment of ₦1.050bn.

In contrast, the newly issued seven-year bond, which carries a coupon rate of 17.95 per cent and matures on June 25, 2032, generated significantly higher demand. The instrument attracted 209 bids with total subscriptions of ₦561.170bn. Out of these, 41 bids were accepted, bringing the final allotment to ₦98.950bn, completing the total issuance target of ₦100bn.

The DMO explained that the strong investor participation, particularly in the seven-year bond, reflects sustained market confidence in government securities, even amid evolving macroeconomic conditions.

The auction was conducted in line with statutory guidelines, including 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.

The marginal rates stood at 17.75 per cent for the five-year re-opening bond and 17.95 per cent for the seven-year new issue.

The DMO clarified that while the marginal rate for the five-year bond was lower than the fixed coupon rate of 19.30 per cent, the original coupon rate remains applicable for interest payments, which will be made semi-annually on both instruments.

Each unit of the bonds was priced at ₦1,000, with a minimum subscription amount of ₦50,001,000.

Additional subscriptions were required in multiples of ₦1,000. Investors who secured allotments will be entitled to periodic interest payments throughout the tenor of the bonds, while the principal will be repaid in full at maturity through a bullet repayment structure.

Settlement for the June 2025 FGN bonds is scheduled for Wednesday, June 25, 2025.

The successful auction reinforces the FGN’s domestic borrowing strategy to meet fiscal needs while supporting the development of Nigeria’s local bond market.

Investors Stake Over N560bn On FG’s N100bn Bond is first published on The Whistler Newspaper