The Debt Management Office (DMO) has successfully completed its Federal Government bond auction for July 2025, raising a total of N185.9 billion across two re-opened bond offerings.
The auction, held on July 28, 2025, featured the re-opening of two previously issued FGN bonds — the 19.30% FGN APR 2029 bond with a five-year tenor and the 17.95% FGN JUN 2032 bond with a seven-year maturity.
The DMO received strong investor demand for both bonds, with the 5-Year FGN APR 2029 bond attracting N39.075 billion in total subscriptions and the 7-Year FGN JUN 2032 bond garnering an impressive N261.597 billion.
Persecondnews reports that out of these bids, the DMO allotted N13.430 billion for the APR 2029 bond and N172.502 billion for the JUN 2032 bond, amounting to a total allotment of N185.932 billion, well over the initial offer size.
The bonds retained their original coupon rates of 19.30% and 17.95% respectively, but were allotted at marginal rates of 15.69% for the 5-Year bond and 15.90% for the 7-Year bond.
This reflects a decline in yield expectations, possibly indicating that investors anticipate easing inflationary pressures or a stable monetary policy environment in the medium term.
The bond re-openings attracted a total of 149 bids, with 40 bids for the 2029 maturity and 109 bids for the 2032 maturity.
Of these, 74 bids were successful, with 15 bids accepted for the 2029 bond and 59 bids accepted for the 2032 bond.
The settlement day for the auction is scheduled for July 30, 2025.
In a separate note, the DMO has been consistent in its bond auctions, having raised N669.94 billion in January 2025 through a similar auction.
The proceeds from these bond auctions will be used to finance critical government projects and address fiscal deficits, providing stable investment opportunities for institutional and retail investors.
Author
Leave a comment