FG to auction N150bn bonds next week

The Federal Government of Nigeria to auction bonds in August
EJ
Emeh Joy

The Federal Government of Nigeria will auction N150bn worth of bonds by subscription on August 19, the Debt Management Office says.

A circular released by the DMO on Tuesday showed the breakdown of the figure which include a N25bn 10-year reopening bond which would mature in January 2026 and be offered at 12.5 per cent; and a N40bn 15-year reopening bond that would mature in March 2035 and be offered at 12.5 per cent.

It also showed a N45bn 25-year reopening bond that would mature in July 2045 and be offered at 9.8 per cent, and the longest tenor of a N40bn 30-year re-opening bond to be offered at 12.98 per cent.

According to the DMO, the settlement date for the bonds is August 21, 2020. The Federal Government's bonds worth N130bn which were auctioned in July were oversubscribed by N340.13bn.

The total subscription received for the July bonds was N470.13bn, comprising N71.97bn for the 12.5 per cent FGN January 20206 bonds; N60.32bn for the 12.5 per cent FGN March 2035 bonds.

It also comprises of N130bn for the 9.8 per cent FGN July 2045 bonds; and N207.57bn for the 12.98 per cent FGN March 2050 bonds.

The 12.5 per cent FGN January bond was offered for N25bn, while the other three bonds were offered for N35bn each.

According to the auction results, 36, 58, 70 and 29 were successful bids for the total bids for each bonds auction of 97, 87, 131 and 189 bids.

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