The Debt Management Office (DMO) has announced the successful completion of its Federal Government bond auction, with a total of N185.9 billion successfully allotted across two re-opened bond offerings.
The auction, held on July 28, 2025, featured the re-opening of two previously issued FGN bonds: N20 billion for the 19.30% FGN APR 2029 bond with a five-year tenor, and N60 billion for the 17.95% FGN JUN 2032 bond with a seven-year maturity.
The settlement day is scheduled for July 30, 2025.
According to figures released on the DMO website, 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 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.
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 reflects 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).
June 2025 auction results
The July 2025 bond auction allotment is more 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.
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)
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.
