The Debt Management Office (DMO) has announced that it successfully raised N136.16 billion from the Federal Government of Nigeria (FGN) bond auction conducted in August 2025.
According to the DMO, the auction featured the 17.945% FGN AUG 2030 (new 5-year bond) and the 17.95% FGN JUN 2032 (re-opening, 7-year bond), each with an offered size of N100 billion.
This is according to a circular posted on DMO’s website on Tuesday.
According to the data, the 5-year bond attracted 70 bids worth N102.36 billion, out of which the DMO allotted N46.01 billion at a marginal rate of 17.945%. Bid rates for this instrument ranged between 12.50% and 21.50%.
The 7-year bond witnessed stronger interest, with 111 bids amounting to N165.81 billion. The DMO allotted N90.16 billion at a marginal rate of 18%, within a bid range of 15% to 22%.
Results for July 2025 auction
In July 2025, DMO announced that a total of N185.9 billion successfully allotted across two re-opened bond offerings. This is more than the allotment for August.
- The auction 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 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.
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).
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.
- 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.
