(3 Minutes Read)
The issuance includes the reopening of a five-year N70 billion bond alongside reopenings of seven- and nine-year bonds, each valued at N70 billion and N50 billion each.
The federal government, through the Debt Management Office (DMO), will be auctioning Series 1 of its first-ever domestic dollar bond worth US$500 million. The Debt Management Office will be issuing three tranches of FGN bonds worth N190 billion today.
The issuance includes the reopening of a five-year N70 billion bond alongside reopenings of seven- and nine-year bonds, each valued at N70 billion and N50 billion each. At the last auction in July, DMO sold N378 billion across the three bonds offered, with the stop rates of the longest tenure at 20.45 per cent.
Nigeria’s Debt Management Office (DMO) sold double the N100 billion offered on its longest offer (a nine-year bond) as investors locked in on a 21.98 per cent yield at its auction today.
Preference was given to the long-dated tenor (new nine-year bond) selling N200.65 billion, 100 per cent higher than offered with an oversubscription of N241.65 billion. A total of N225.72 billion FGN bonds was sold at the auction today; the amount sold was less than the auctioned N300 billion FGN bonds across three tranches. It included a reopened nine-year bond and five and seven tenures at N100 billion each.
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The bond issuance will be listed on platforms such as the Nigerian Exchange and FMDQ, making it accessible to a variety of investors. The principal will be repaid after five years, with interest payments made every six months. This structured repayment schedule is designed to provide confidence to investors.
