FG to auction N150bn bonds next week

The Debt Management Office has said the Federal Government will auction N150 billion worth of bonds by subscription on August 19.

A circular by the DMO on Tuesday showed the breakdown of the figure to include a N25 billion 10-year reopening bond that would mature in January 2026 and be offered at 12.5 per cent; and a N40 billion 15-year reopening bond that would mature in March 2035 and be offered at 12.5 per cent.

It also showed a N45 billion 25-year reopening bond that would mature in July 2045 and be offered at 9.8 per cent; and the longest tenor of a N40 billion 30-year reopening bond to be offered at 12.98.

According to the DMO, the settlement date for the bonds is August 21, 2020.

The Federal Government’s bonds worth N130 billion, which were auctioned in July, were oversubscribed by N340.13 billion.

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

The 12.5 per cent FGN January bond was offered for N25 billion, while the other three bonds were offered for N35bn each.

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

According to the DMO, 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 six per cent, 9.5 per cent, 9.8 per cent and 9.95 per cent respectively.