The Federal Government through the Debt Management Office (DMO), on Thursday, announced offering of N200 billion in bonds subscription by auction in August 2025.
This is contained in a A circular posted on the Debt Management Office’s website on Thursday that the exercise will hold on August 25, 2025, with settlement fixed for Wednesday, August 27, 2025.
DMO added that offer comprises two bonds: N100 billion FGN JUL 2030, a five-year tenor re-opening, and N100 billion 17.95% FGN JUNE 2032, a seven-year tenor re-opening.
The circular also disclosed that each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
According to DMO, the interest rate for the bonds will be determined based on the yield-to-maturity bid that clears the total volume offered at auction, as these are re-openings of previously issued bonds. Interest payments will be made semi-annually, while the principal will be repaid in full through a bullet repayment at the bond’s maturity date.
Also in the circular, DMO confirmed the successful completion of the July 2025 FGN bond auction, with a total of N185.9 billion successfully allotted across two re-opened bond offerings.
According to the circular, the auction garnered N39.075 billion in total subscriptions for the 5-Year FGN APR 2029 bond and an impressive N261.597 billion for the 7-Year FGN JUN 2032 bond.
Out of these bids, the circular disclosed DMO allotted N13.430 billion for the APR 2029 bond and N172.502 billion for the JUN 2032 bond—amounting to a total allotment of N185.932 billion, well over the initial offer size.
It added that 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, according DMO circular, signposts 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)
