The Debt Administration Workplace (DMO) has launched the outcomes of the April 2025 Federal Authorities of Nigeria (FGN) Bond Public sale, wherein it efficiently allotted a complete of N397.898 billion throughout two re-opening points—the 19.30% FGN APR 2029 (5-Yr Bond) and the 19.89% FGN MAY 2033 (9-Yr Bond).
The public sale held on April 28, 2025, and the settlement date is scheduled for April 30, 2025.
In response to the DMO’s official knowledge, the public sale noticed blended investor curiosity throughout the 2 maturities.
The 2033 bond was oversubscribed considerably, whereas the shorter-dated 2029 notice witnessed modest demand.
Breakdown of Public sale Outcomes:
- The 5-year FGN Bond, provided at a coupon charge of 19.30%, recorded a complete allotment of N21.127 billion throughout 13 profitable subscriptions.
- The 9-year FGN Bond, which carries the next yield of 19.89%, garnered stronger curiosity, with a complete allotment of N376.771 billion from 137 profitable subscriptions.
The FGN bond continues to draw robust participation as Nigerians search safer and extra predictable returns amid broader market uncertainties.
- The comparatively excessive rates of interest for the April supply underscore the federal government’s bid to lift home capital whereas providing engaging yields to encourage financial savings.
- FGN bond is issued with a minimal subscription of N50,001,000.00 + a number of of N1,000.00 thereafter.
Investor Sentiment and Yield Dynamics
Investor urge for food was clearly skewed towards the longer-dated 2033 bonds, which attracted N452.16 billion in whole bids—greater than triple the N150 billion on supply. This resulted in a aggressive allotment of N376.77 billion and an extra N73 billion by way of non-competitive bids, pushing whole allotments for the 2033 paper to N449.77 billion.
In distinction, the 2029 bond noticed subdued demand, attracting bids price N43.79 billion in opposition to a proposal measurement of N200 billion. The DMO allotted solely N21.13 billion competitively and N50 billion non-competitively, totaling N71.13 billion.
Each points had been allotted at marginal charges of 19.00% for the 2029 bond and 19.99% for the 2033 bond. Nevertheless, the unique coupon charges of 19.30% and 19.89%, respectively, shall be maintained, the DMO said.
Implications for the Market
The robust oversubscription of the 2033 paper suggests traders’ desire for longer-dated devices within the present charge setting, probably pushed by expectations of future financial easing or sustained inflation hedging.
The outcomes additionally sign continued confidence within the FGN bond market, regardless of ongoing macroeconomic uncertainties, as institutional traders place for yield and length in anticipation of market shifts.
What it is best to know
Earlier this month, DMO efficiently allotted a complete of N4.34 billion within the April 2025 issuance of the Federal Authorities of Nigeria (FGN) Financial savings Bonds.
The allotment, which ran through the supply interval from April 7 to 11, 2025, noticed traders subscribe to 2 tenors: a 2-year bond maturing on April 16, 2027, and a 3-year bond maturing on April 16, 2028.
Be First to Comment