The Federal Government is targeting to raise N2.5 trillion from its second FGN bond auction of 2024, according to the latest circular from the Debt Management Office (DMO).
Details of the circular indicate that the auction is set for February 19, 2024, with the settlement date being February 21, 2024.
In January, the DMO offered four bonds worth N90 billion each.
The February auction appears to the first time the Federal Government is borrowing over a trillion through a single bond.
The bond offerings are: N1,250,000,000,000.00 – FGN FEB 2031 (7-Yr NEW) and N1,250,000,000,000.00 – FGN FEB 2034 (10-Yr NEW)
While the first is expected to mature in seven years, the second will mature in 10 years.
They are both newly created bonds, and are offered at a unit price of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are made semi-annually (twice a year).
