The Debt Management Office (DMO) has announced the completion of its Federal Government bond auction, with about ₦186 billion allotted across two reopened bond offerings.
According to figures released on the DMO website, the auction fetched ₦39.075 billion in total subscriptions for the 5-Year FGN APR 2029 bond and an impressive ₦261.597 billion for the 7-Year FGN JUN 2032 bond.
Out of these bids, the DMO allotted ₦13.430 billion for the APR 2029 bond and ₦172.502 billion for the JUN 2032 bond, amounting to a total allotment of about ₦185.932 billion, well over the initial offer size.
The auction, held on July 28, 2025, featured the re-opening of two previously issued FGN bonds: ₦20 billion for the 19.30% FGN APR 2029 bond with a five-year tenor, and ₦60 billion for the 17.95% FGN JUN 2032 bond with a seven-year maturity.
According to the DMO, the bond issuance complied with the DMO (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
Each bond unit was priced at ₦1,000, with a minimum subscription amount of ₦50,001,000. Additional subscriptions must be made in multiples of ₦1,000.
Although the coupon rates were predetermined, successful bidders at the auction paid a price based on the yield-to-maturity that cleared the offered volume, along with any accrued interest from the last interest payment date up to the settlement date.
Interest on both bonds is payable semi-annually, providing bondholders with regular income during the tenor of the instruments.
The bonds will be repaid in full on their respective maturity dates through bullet repayment, meaning the principal will be paid back in a single lump sum.
While the bonds retained their original coupon rates of 19.30% and 17.95% respectively, they were allotted at marginal rates of 15.69% for the 5-Year bond and 15.90% for the 7-Year bond.
This reflects a decline in yield expectations, possibly indicating that investors anticipate easing inflationary pressures or a stable monetary policy environment in the medium term.
The bond re-openings attracted a total of 149 bids—40 for the 2029 maturity and 109 for the 2032 maturity. Of these, 74 bids were successful (15 and 59, respectively).
The settlement day is scheduled for July 30, 2025.
The July 2025 bond auction allotment was more than the ₦100 billion offered in June.
The first instrument offered was a five-year reopening bond with a coupon rate of 19.30%, set to mature on April 17, 2029. The bond attracted 30 bids totalling ₦41.685 billion in subscriptions, signalling strong investor demand.
However, only two bids were successful, with a final allotment of ₦1.050 billion.
The second instrument, a newly issued seven-year bond carrying a 17.95% coupon rate and maturing on June 25, 2032, garnered 209 bids, with subscriptions amounting to ₦561.170 billion.
Out of these, 41 bids were accepted, and ₦98.950 billion was allotted.
The marginal rates for the successful bids were as follows: 17.75% for the 19.30% FGN APR 2029 (Re-opening, 5-Year Bond), and 17.95% for the 17.95% FGN JUN 2032 (New, 7-Year Bond).
