The Debt Management Office (DMO) is expected to raise N700 billion through a Federal Government Bond (FGN) auction scheduled today.
This is according to the official offer circular to Primary Dealer Market Makers (PDMMs).
The planned issuance is part of the Federal Government’s domestic borrowing programme aimed at funding budgetary needs and managing public debt.
Details of the instruments to be offered and terms of the auction show that the Federal Government will raise the N700 billion through three bond re-openings across different maturities.
It further indicated that the auction will be conducted using a competitive bidding process, with settlement scheduled for April 29, 2026.
During the auction, N300 billion will be offered in the 17.945% FGN AUG 2030 (5-year re-opening); N100 billion will be offered in the 17.95% FGN JUN 2032 (7-year re-opening); and N300 billion will be offered in the 22.60% FGN JAN 2035 (10-year re-opening)
Successful bidders will pay a price that reflects the yield-to-maturity that clears the auction, in addition to any accrued interest.
Subscriptions are priced at N1,000 per unit, with a minimum investment of N50.001 million and in multiples of N1,000 thereafter.
Interest payments on the bonds are made semi-annually, while the principal is repaid in full at maturity.
