FG Generates N1.5 Trillion from Two FG Bond Offerings

Director-General, Debt Management Office, Patience Oniha
Director-General, Debt Management Office, Patience Onihagoogle

The Federal Government fell short of its N2.5 Trilion target, raising only N1.5 Trillion through bonds at its February auction.

The Debt Management Office announced in a press release on Tuesday that the total allotment for the 2031 bond was N873.53bn, with the 2034 bond standing at N621.38bn.

The Federal Government attempted to borrow N2.5tn through bonds last week, marking its second visit to the fixed-income market this year.

It was mentioned that the offerings included N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor.

Both of these bonds are newly created and are available at a unit price of N1,000. The minimum subscription requirement is N50,001,000 with subsequent increments in multiples of N1,000. Interest payments on FGN bonds are made semi-annually (twice a year).

"In an unprecedented development, the Debt Management Office raised N1.495tn Federal Government of Nigeria bonds at its monthly auction for February 2024," the statement reads.

It was reported that N873.53bn was assigned to the 2031 FGN bond and N621.38bn to the 2034 FGN bond at the end of the auction, resulting in a total allotment of N1.495tn.

“The relatively large amount on offer was based on the FGN’s financing need, the opportunity to attract foreign investors, as well as, the premise that some local investors may be able to access pools of funds.”

The DMO offered four 10-year reopened bonds, amounting to N360bn, in January.

From the four bonds that were auctioned, FG raised around N418.197bn according to the results.

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