The Debt Administration Workplace (DMO), on behalf of the Federal Authorities of Nigeria (FGN), has introduced the providing of N200 billion in bonds subscription by public sale in August 2025.
The train is scheduled to happen on Monday, August 25, 2025, with settlement fastened for Wednesday, August 27, 2025.
That is based on a round posted on DMO’s web site on Thursday.
The supply includes two bonds: N100 billion FGN JUL 2030, a five-year tenor re-opening, and N100 billion 17.95% FGN JUNE 2032, a seven-year tenor re-opening.
Every bond unit is priced at N1,000, with a minimal subscription of N5,000 and extra investments in multiples of N1,000, permitting buyers to subscribe for as much as N50 million.
The rate of interest for the bonds shall be decided based mostly on the yield-to-maturity bid that clears the whole quantity provided at public sale, as these are re-openings of beforehand issued bonds. Curiosity funds shall be made semi-annually, whereas the principal shall be repaid in full by way of a bullet compensation on the bond’s maturity date.
Outcomes for July 2025 public sale
DMO introduced the profitable completion of the July 2025 FGN bond public sale, with a complete of N185.9 billion efficiently allotted throughout two re-opened bond choices.
In accordance with figures launched on the DMO web site, the public sale garnered N39.075 billion in whole subscriptions for the 5-Yr FGN APR 2029 bond and a formidable N261.597 billion for the 7-Yr FGN JUN 2032 bond.
Out of those bids, the DMO allotted N13.430 billion for the APR 2029 bond and N172.502 billion for the JUN 2032 bond—amounting to a complete allotment of N185.932 billion, effectively over the preliminary supply measurement.
Whereas the bonds retained their unique coupon charges of 19.30% and 17.95% respectively, they had been allotted at marginal charges of 15.69% for the 5-Yr bond and 15.90% for the 7-Yr bond. This displays a decline in yield expectations, presumably indicating that buyers anticipate easing inflationary pressures or a steady financial coverage surroundings within the medium time period.
The bond re-openings attracted a complete of 149 bids—40 for the 2029 maturity and 109 for the 2032 maturity. Of those, 74 bids had been profitable (15 and 59, respectively).
Extra insights
In accordance with the DMO, the bond issuance was carried out in compliance with the Debt Administration Workplace (Institution) Act, 2003, and the Native Loans (Registered Inventory and Securities) Act, CAP. L17, Legal guidelines of the Federation of Nigeria 2004.
The DMO suggested buyers to contact any of the authorised Main Supplier Market Makers (PDMMs) for functions and additional steerage.
These establishments embrace 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.
Be First to Comment