FG Seeks N300bn Through Bond Auction
The Federal Government, through the Debt Management Office (DMO) has announced plans to raise N300bn from the bond market via auction on May 26.
According to the offer circular released by the DMO on Thursday, the issuance comprises an N100bn reopening of the 19.30 per cent FGN April 2029 bond (five-year tenor) and an N200bn reopening of the 19.89 per cent FGN May 2033 bond (nine-year tenor).
The bonds are offered in units of N1,000 each, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter. The interest on the bonds will be paid semi-annually, while principal repayment will be made in full at maturity.
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Although these are re-openings of existing issues, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, in addition to any accrued interest.
The DMO noted that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act and are tax-exempt for pension funds, as provided in the Company Income Tax Act and the Personal Income Tax Act.
The instruments are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and they qualify as liquid assets for banks in the computation of liquidity ratios.
Economic Confidential reported that the Debt Management Office has allotted N4.3bn worth of Federal Government Savings Bonds in its May 2025 offer.
