Mathew Amaechi
In a bid to shore up its finances, the Federal Government of Nigeria is seeking to raise a whopping N450 billion from the public through a triple bond auction. This move, facilitated by the Debt Management Office (DMO), aims to attract investors to purchase government bonds in three different categories.
A bond offer circular issued by DMO on Monday revealed the bond applications are open in three categories: The first is a five-year bond with a 19.30% coupon rate, originally issued in April 2029, and the government plans to raise N100 billion from this reopening.
The second offering is a seven-year bond, first issued in February 2031, with an 18.50% coupon rate, through which the government aims to secure N150 billion. The third offer, is a new issuance of a ten-year bond, the FGN January 2035 bond, targeting N200 billion. The debt management agency said the auction will take place on January 27, 2025, with a settlement date of January 29, 2025.
DMO directs interested investors to participate in the bond auction through authorised Primary Dealer Market Makers (PDMMsThe bond auction, scheduled for today, January 27, 2025, will have a settlement date of January 29, 2025. Interested investors are directed to participate through authorized Primary Dealers.
This bond auction is part of the government’s efforts to raise funds for its activities, with the target amount being higher than the N360 billion offered in January 2024.