FG OFFERS N80BN IN BOND AUCTION FOR JULY
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BY ALICE IDOWU
The Federal Government of Nigeria (FGN) has declared the provision of ₦80 billion in FGN bonds for acquisition through auction, scheduled for July 28, 2025, with settlement anticipated on July 30, 2025.
The announcement was made by the Debt Management Office (DMO) in a circular posted on Wednesday.
According to the DMO, the bond issuance was carried out in compliance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
The proposal includes two re-openings of earlier issued FGN bonds: ₦20 billion is being presented for the 19.30% FGN APR 2029 bond, which has a five-year duration, while ₦60 billion is designated for the 17.95% FGN June 2032 bond, with a maturity term of seven years.
Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000, allowing investors to subscribe for up to ₦50 million.
The interest rate for the bonds will be established based on the yield-to-maturity bid that satisfies the entire volume presented at auction, given that these are re-openings of previously issued bonds. Interest disbursements will occur semi-annually, while the principal will be reimbursed in full via a bullet repayment at the bond’s maturity date.
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The July 2025 bond auction is less 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 subsequent instrument, a recently released seven-year bond featuring a 17.95% coupon rate and set to mature on June 25, 2032, attracted 209 bids, with total subscriptions reaching ₦561.170 billion.
Of these, 41 bids were approved, and ₦98.950 billion was distributed
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