The Debt Management Office (DMO) said it has raised N271.2 billion in the Federal Government’s bond auction held on March 24, 2025.
The DMO’s target was N300 billion from the bond auction.
The auction was for 19.30 per cent FGN in April 2029, re-opening a five-year bond through which the government hoped to raise N200 billion, and the 19.89 per cent FGN in May 2033, re-opening a nine-year bond, expected to raise N100 billion.
However, the auction results show the five-year bond received a total subscription of N59.069 billion from 35 bids, with only three bids being successful. The nine-year bond attracted N471.241 billion in subscriptions from 215 bids, out of which 95 were successful.
DMO allotted N266.452 billion to successful bidders, demonstrating strong investor appetite for long-term government securities.
The DMO announced that the marginal rates stood at 19.00 per cent for the five-year bond and 19.99 per cent for the nine-year bond.
The debt office, however, stated that the original coupon rates of 19.30 per cent for the April 2029 bond and 19.89 per cent for the May 2033 bond will be maintained.
The DMO allotted N91.3 billion in non-competitive allotments for the five-year bond and N61.15 billion for the nine-year bond.
Analysts suggest the results reflect broader macroeconomic trends, including inflationary pressures and monetary policy expectations. The marginal rates indicate that investors are pricing in potential risks while seeking attractive yields.
The bond offerings are part of the Federal Government’s plan to raise up to N1.8 trillion from the bond market during the first quarter of 2025 in an effort to bridge the fiscal deficit.
The Federal Government has so far raised N669.94 billion from January and N1.63 trillion in February bond auctions.
