The Debt Management Office (DMO) has reissued N350 billion worth of Federal Government Saving Bonds in February.
According to the offer circular issued by the DMO on behalf of the Federal Government, the bonds were offered for subscription by auction on Monday.
By reopening these bonds, the government provided investors with another opportunity to participate in the bonds.
For the January N450 billion bonds auction, DMO announced that it successfully raised a total of N669.94 billion. Out of the money raised, N606.46 billion was allotted across three bond tenors: FGN APR 2029, FGN FEB 2031, and FGN JAN 2035.
The January bonds were oversubscribed, with investors showing keen interest across the three tenors offered, with competitive yields reflecting prevailing market conditions.
The latest offer circular indicated that the bonds were reissues: N200 billion for the 19.30 per cent FGN APR 2029 and N150 billion for the seven-year tenor FGN FEB 2031 with a coupon rate of 18.50 per cent.
The settlement date of the auction is Wednesday.
The amount raised from the bond offering is expected to support the government’s efforts at financing major infrastructure projects while helping to bridge the deficit in the 2025 budget, which the government has said it would fill through both domestic and foreign borrowings.
