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Nigerian govt to auction N150bn bonds next week

Nigerian govt commences auction of savings bond

The Nigerian government will auction bonds worth N150 billion by subscription on 19th August, the Debt Management Office (DMO) said on Tuesday.

A circular by the debt office indicated a N25 billion 10-year re-opening bond maturing in January 2026 would be offered at 12.5 per cent while a N40 billion 15-year reopening bond maturing in March 2035 would also be offered at 12.5 per cent.

In addition, a N45 billion 25 –year reopening bond that would mature in July 2045 would be offered at 9.8 per cent and the longest tenor of a N40 billion 30-year reopening bond to be offered as 12.98 per cent.

The DMO said the settlement date for the bonds is 21st August 2020.

Read also: FGN Bonds issued in August auction attracted N139.58bn in subscriptions —DMO

Last month, the Nigerian government had auctioned bonds valued at N130 billion, which were oversubscribed by N340.13 billion.

The July bonds attracted a total subscription of N470.13 billion, including N60.32bn for the 12.5 per cent FGN March 2035 bonds; N71.97bn for the 12.5 per cent FGN January 2026 bonds; N130.27bn for the 9.8 per cent FGN July 2045 bonds and N207.57bn for the 12.98 per cent FGN March 2050 bonds.

While the 12.5 per cent FGN January bond was offered for N25 billion, the rest three bonds were offered for N35 billion each.

The auction results revealed 36, 58, 70 and 29 were successful bids for the total bids for each bonds auction of 97, 87, 131 and 189 bids.

The DMO noted that successful bids for the 12.5 per cent FGN January 2026, 12.5 per cent FGN March 2035, 9.80 per cent FGN July 2045 and 12.98 per cent FGN March 2050 were allotted at the marginal rates of 6 per cent, 9.5 per cent, 9.8 per cent and 9.95 per cent in that order.

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