The Debt Administration Workplace (DMO) has introduced the outcomes of the June 2025 Federal Authorities of Nigeria (FGN) Bond Public sale, revealing {that a} whole of N100 billion was efficiently allotted throughout two bond choices.
The public sale, held on Monday, June 23, 2025, featured two separate bonds with face values of N50 billion every.
In accordance with the DMO, the bonds have been issued as a part of the federal government’s technique to finance the 2025 nationwide finances and handle public debt obligations by means of home borrowing.
Public sale Particulars and Subscription Ranges
The primary instrument supplied was a five-year re-opening bond with a coupon fee of 19.30%, set to mature on April 17, 2029. The bond attracted 30 bids totaling N41.685 billion in subscriptions, signaling robust investor demand.
Nonetheless, solely two bids have been profitable, with a remaining allotment of N1.050 billion.
The second instrument, a newly issued seven-year bond carrying a 17.95% coupon fee and maturing on June 25, 2032, garnered 209 bids, with subscriptions amounting to N561.170 billion.
Out of those, 41 bids have been accepted, and N98.950 billion was allotted.
This introduced the entire funds raised by means of the public sale to N100 billion, aligning with the DMO’s said goal.
Settlement for the bonds is scheduled for Wednesday, June 25, 2025.
Regulatory Framework and Charges
In accordance with the DMO, the bond issuance was carried out in compliance with the Debt Administration Workplace (Institution) Act, 2003, and the Native Loans (Registered Inventory and Securities) Act, CAP. L17, Legal guidelines of the Federation of Nigeria 2004.
The marginal charges for the profitable bids have been as follows:
- 17.75% for the 19.30% FGN APR 2029 (Re-opening, 5-12 months Bond)
- 17.95% for the 17.95% FGN JUN 2032 (New, 7-12 months Bond)
Regardless of the marginal fee for the five-year bond being decrease than the coupon fee, the DMO clarified that the unique coupon fee of 19.30% will stay in impact.
What You Ought to Know
- Every unit of the bonds is priced at N1,000, with a minimal subscription quantity of N50,001,000. Further subscriptions have to be made in multiples of N1,000.
- Though the coupon charges are predetermined, profitable bidders on the public sale pay a value primarily based on the yield-to-maturity that clears the supplied quantity, together with any accrued curiosity from the final curiosity fee date as much as the settlement date.
- Curiosity on each bonds is payable semi-annually, offering bondholders with common earnings through the tenor of the devices.
The bonds can be repaid in full on their respective maturity dates by means of bullet reimbursement, which means the principal can be paid again in a single lump sum.
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