The Debt Management Office (DMO) has reported the completion of the Federal Government’s bond auction for July 2025, with the raising of a total of N185.9 billion across two re-opened bond offerings.
The auction featured the re-opening of two previously issued FGN bonds, namely 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.
According to the Office, investor demand for both bonds was very strong, 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.
The figures indicated that out of these bids, N13.430 billion was allotted for the APR 2029 bond and N172.502 billion for the JUN 2032 bond, with a total allotment of N185.932 billion, higher than the initial offer size.
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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, reflecting a decline in yield expectations.
A further analysis of the bonds’ performance reflected that the re-openings attracted a total of 149 bids, with 40 bids for the 2029 maturity and 109 bids for the 2032 maturity, and out off 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 line with the government’s fiscal policy strategy, the proceeds from these bond auctions will be used to finance critical infrastructure projects and bridge the fiscal deficits in this year’s budget, providing stable investment opportunities for institutional and retail investors.
