The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), has announced the offer of N80 billion in FGN bonds for subscription via auction, slated for July 28, 2025, with settlement expected on July 30, 2025.
This is according to a circular posted on DMO’s website on Wednesday.
The offer comprises two re-openings of previously issued FGN bonds: N20 billion is being offered for the 19.30% FGN APR 2029 bond, which has a five-year tenor, while N60 billion is allocated to the 17.95% FGN June 2032 bond, with a maturity period of seven years.
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.
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.
June 2025 auction results
The July 2025 bond auction is less than the N100 billion offered in June.
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.
What you should know
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 DMO advised interested investors to contact any of the authorised Primary Dealer Market Makers (PDMMs) for applications and further guidance.
These institutions include Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, and Zenith Bank Plc.
