FG to Borrow N2.5tn through Bonds – DMO

The Federal Government is seeking to raise N2.5tn in its second FGN bonds auction of the year.

Debt Management Office in a circular issued on Wednesday, stated that the offerings consisted of N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor.

FGN savings bonds are part of the domestic borrowing plan of the Federal Government.

Last year, the Federal Government raised about N7.06tn from the fixed income market.

This year, the Federal Government has projected its new borrowings to hit N7.83tn.

President Bola Tinubu had sought approval from the National Assembly for about $8.69bn and €100m as part of the external borrowing plan for 2022 to 2024.

The latest FG bonds have a face value N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

Interest payments on FGN bonds are usually semi-annually.

In January, the FG had offered a two-year FGN Savings bond due January 17, 2026 at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027 at 12.033 per cent per annum.

It allotted N603.42bn for the two-year tenor bond and N1.394tn for the three-year bond.