FG To Borrow N2.5trn Through Bond – DMO

The Debt Management Office (DMO) has said that the Federal Government is seeking to raise N2.5 trillion in its second bond auction of the year.

In a circular issued on Wednesday, DMO stated that the offerings consisted of N1.25 trillion with a maturity date of February 2031 and another N1.25 trillion with a maturity date of February 2034.

The federal government is raising the money through its FGN savings bonds, which are part of the domestic borrowing plan.

“Debt Management Office on behalf of the Federal Government of Nigeria offers for subscription by auction and is authorized to receive applications for N1,250,000,000,000.00 FGN FEB 2031 (7-Yr NEW) and N1,250,000,000,000.00-FGN FEB 2054 (10-Yr NEW),” the circular stated.

It stated that the auction date is February 19, 2024, while the settlement date is February 21, 2024.

Last year, the Federal Government raised about N7.06tn from the fixed-income market.

This year, the Federal Government has projected its new borrowings to hit N7.83 trillion.

The latest FG bonds have a face value N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

Interest payments on FGN bonds are usually semi-annually.

In January, the FG had offered a two-year FGN Savings bond due January 17, 2026 at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027 at 12.033 per cent per annum.

It allocated N603.42 billion for the two-year tenor bond and N1.394 trllion for the three-year bond.