The Debt Management Office (DMO) has allotted ₦100 billion across two new bond offerings.
Two distinct bonds with face values of ₦50 billion each were up for auction; these were the outcomes of the Federal Government of Nigeria (FGN) Bond Auction held in June 2025.
The government’s plan to manage public debt obligations through domestic borrowing and finance the 2025 national budget included the issuance of bonds.
A five-year reopening bond with a coupon rate of 19.30% and a maturity date of April 17, 2029, was the first instrument offered. Strong investor interest was shown by the bond’s 30 bids, which totalled ₦41.685 billion in subscriptions.
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However, with a final allocation of ₦1.050 billion, only two proposals were successful.
The second instrument, a recently issued seven-year bond with a 17.95% interest rate that matures on June 25, 2032, received 209 bids and ₦561.170 billion in subscriptions.
Of these, 41 bids were approved, and a total of ₦98.950 billion was given out.
In line with the DMO’s declared goal, this increased the total amount of money raised through the auction to 100 billion.
The DMO claims that the bond was issued per the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004, and the Debt Management Office (Establishment) Act, 2003.
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The 19.30% FGN APR 2029 (Re-opening, 5-Year Bond) and the 17.95% FGN JUN 2032 (New, 7-Year Bond) had marginal rates of 17.75% and 17.95%, respectively, for the successful bids.
The DMO explained that the initial coupon rate of 19.30% will still be in place even though the five-year bond’s marginal rate is lower than the coupon rate.
The bonds have a price of ₦1,000 per unit and a minimum subscription amount of ₦50,000,000. It is necessary to pay in multiples of ₦1,000 for further subscriptions.
According to the DMO, successful bidders at the auction pay a price based on the yield-to-maturity that clears the proposed volume and any interest accrued from the last interest payment date until the settlement date, even though the coupon rates are preset.
Throughout the instruments, bondholders will receive consistent income in the form of semi-annual interest payments on both bonds.
The principal will be paid back in one lump sum when the bonds are fully redeemed by bullet payback on their respective maturity dates.
The bonds are expected to be settled on Wednesday, June 25, 2025.
