The Debt Management Office (DMO) has announced the results of the June 2025 Federal Government of Nigeria (FGN) Bond Auction, revealing that a total of N100 billion was successfully allotted across two bond offerings.
The auction, held on Monday, June 23, 2025, featured two separate bonds with face values of N50 billion each.
According to the DMO, the bonds were issued as part of the government’s strategy to finance the 2025 national budget and manage public debt obligations through domestic borrowing.
Auction Details and Subscription Levels
The first instrument offered was a five-year re-opening bond with a coupon rate of 19.30%, set to mature on April 17, 2029. The bond attracted 30 bids totaling N41.685 billion in subscriptions, signaling strong investor demand.
However, only two bids were successful, with a final allotment of N1.050 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 N561.170 billion.
Out of these, 41 bids were accepted, and N98.950 billion was allotted.
This brought the total funds raised through the auction to N100 billion, aligning with the DMO’s stated target.
Settlement for the bonds is scheduled for Wednesday, June 25, 2025.
Regulatory Framework and Rates
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 marginal rates for the successful bids were as follows:
- 17.75% for the 19.30% FGN APR 2029 (Re-opening, 5-Year Bond)
- 17.95% for the 17.95% FGN JUN 2032 (New, 7-Year Bond)
Despite the marginal rate for the five-year bond being lower than the coupon rate, the DMO clarified that the original coupon rate of 19.30% will remain in effect.
What You Should Know
- Each unit of the bonds is priced at N1,000, with a minimum subscription amount of N50,001,000. Additional subscriptions must be made in multiples of N1,000.
- Although the coupon rates are predetermined, successful bidders at the auction pay a price based on the yield-to-maturity that clears 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.
