The Federal Government plans to raise a total of ₦300 billion in revenue from the domestic bond market in May 2025.
The auction will be held on May 26, with settlement slated for May 28, 2025.
The bond market remains a critical funding channel for the government as it balances competing priorities of economic stimulus, debt sustainability, and investor confidence.
In its last few auctions, the DMO has witnessed significant oversubscription, suggesting that the May 2025 issuance is likely to attract robust demand despite the slight reduction in total offer size.
According to the bond document obtained from the Debt Management Office (DMO) on Thursday, the revenue target is a 12.5% drop from the N350 billion offered in April 2025.
The DMO is offering ₦100 billion worth of the 19.30% FGN APR 2029 (a 5-year bond re-opening) and ₦200 billion of the 19.89% FGN MAY 2033 (a 9-year bond re-opening).
In contrast, the April 2025 auction featured a ₦200 billion offer for the same 5-year bond and ₦150 billion for the 9-year bond, amounting to a total of ₦350 billion.
The offer for the APR 2029 bond has been slashed by half, from ₦200 billion in April to ₦100 billion in May. Meanwhile, the MAY 2033 bond offer was increased by 33.3%, from ₦150 billion to ₦200 billion.
Both bonds are re-openings of previously issued instruments, meaning the coupon rates are fixed at 19.30% and 19.89% respectively, with auction participants bidding based on their preferred yield-to-maturity. The DMO will allot the bonds at clearing rates, factoring in accrued interest as applicable.
The DMO allotted a total of N397.898 billion across two re-opening issues: the 19.30% FGN APR 2029 (5-Year Bond) and the 19.89% FGN MAY 2033 (9-Year Bond).
The 5-year FGN Bond, offered at a coupon rate of 19.30%, recorded a total allotment of ₦21.127 billion across 13 successful subscriptions.
The 9-year FGN Bond, which carries a higher yield of 19.89%, garnered stronger interest, with a total allotment of ₦376.771 billion from 137 successful subscriptions.
