The Debt Administration Workplace (DMO) has reported a powerful present of investor urge for food at its November 2025 public sale of presidency bonds, with whole bids reaching roughly N657 billion, representing greater than 120% of the mixed supply measurement of N460 billion.
The public sale, held on 24 November 2025 with settlement scheduled for 26 November 2025, featured two reopened devices:
A 5-year bond: the 17.945% FGN Aug 2030 re-opening (maturing 27 August 2030) with a proposal measurement of N230 billion.
A 7-year bond: the 17.95% FGN Jun 2032 re-opening (maturing 25 June 2032) additionally provided at N230 billion.
Key outcomes:
For the 5-year Aug 2030 concern: whole bids amounted to N147.869 billion, with allotment of N134.799 billion. The marginal fee at which profitable bids had been allotted was 15.9%.
For the 7-year Jun 2032 concern: whole bids soared to N509.392 billion, with allotment of N448.722 billion (plus a non-competitive allotment of N6 billion). The marginal fee was 16%.
Though the coupon charges of 17.945% (5-year) and 17.95% (7-year) stay unchanged, the pricing to buyers by way of allocation was decided on the premise of the public sale yields (marginal charges).
What this implies
The overwhelming demand for the 7-year bond, with bids of N509 billion versus the supply measurement of N230 billion, highlights investor choice for longer-dated paper within the present atmosphere. The close to >2x subscription ratio for the 7-year in comparison with the 5-year (which was undersubscribed relative to the supply) suggests buyers are assured in holding longer maturities.
The marginal yields of 15.90% and 16.00% are notable: whereas demand was sturdy, buyers look like demanding greater returns, presumably reflecting inflation expectations, foreign money threat, or broader macro-economic issues.
By reopening present bonds somewhat than issuing new ones, the Federal Authorities is constant to elongate maturities and deepen the home debt market — two of the said aims of FGN bond issuance.
The oversubscription in mixture (by about 120% of supply measurement) indicators confidence amongst institutional buyers in sovereign paper, even amid inflationary and foreign money threat. On the similar time, the upper yields sign warning.
What it’s best to know
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.
- Every unit of the bonds is priced at N1,000, with a minimal subscription quantity of N50,001,000. Extra subscriptions have to be made in multiples of N1,000.
- Though the coupon charges are predetermined, profitable bidders on the public sale pay a value based mostly on the yield-to-maturity that clears the provided quantity, together with any accrued curiosity from the final curiosity cost date as much as the settlement date.
