The Debt Management Office (DMO) has announced that the Federal Government is targeting N1.8 trillion from the bond market in the first quarter of 2025 to partly meet the funding N13.08 trillion deficit in the year’s budget.
In the newly released FGN Bond Issuance Calendar by the DMO, the planned issuances comprised a mix of re-opened and new bonds spread across January, February, and March 2025 auctions.
According to the Office, the bond calendar highlights the re-opening of the 19.30 per cent FGN APR 2029 bond, which has a remaining tenor of four years and three months as the Federal Government planned to offer between N150 billion and N200 billion in each of the three auctions.
Also, the 18.50 per cent FGN FEB 2031 bond, with a tenor of six years and one month as of January 2025, will also be re-opened and offered within the same range of N150bn to N200bn per auction.
This is even as the DMO hinted of the auction of a new bond in the market, the FGN JAN 2035 bond, for investors looking for longer-term debt instruments with impressive returns.
The FGN JAN 2035, with an original tenor of 10 years, will be offered within the same N150 billion to N200 billion range.
The auctions are scheduled to take place on January 27, February 24, and March 24, 2025.
Although the bond calendar could be adjusted based on new fiscal developments, the structured approach highlights the government’s commitment to transparency and predictability in meeting its financing needs.
Available data showed that last year, the Federal Government borrowed an estimated N5.84 trillion from the bond market in line with its debt management strategy to bridge the 2024 budget deficit.
However, the government’s borrowings from the bond market last year represented 0.17 per cent lower when compared to the N5.85 trillion it raised from the market the previous year.