The Federal Government of Nigeria (FGN), through the Debt Management Office (DMO), yesterday conducted a bond auction, offering a total of N1.20 trillion across three re-opened maturities.Demographics
The offer size is unchanged from June, according to a circular obtained from the authority, reinforcing the government’s elevated funding requirements amid persistent fiscal pressures.
The issuance will be evenly split, with N400 billion offered across the 22.60 per cent FGN JAN 2035 (10-year), 16.25 per cent FGN APR 2037 (20-year) and 15.45% FGN JUN 2038 (15-year) bonds.
In the June bond auction, the DMO reopened the 22.60 per cent FGN JAN 2035 and 16.25 per cent FGN APR 2037 bonds, maintaining the same maturities offered in the May auction.
The authority offered a total of N1.20 trillion across the two re-opened instruments, marking the largest bond issuance on record. This surpassed the N600 billion offered in May and the previous record high of N900.00bn issued in January.
The larger offer size suggests that, despite the visible front-loading of domestic borrowing in the first quarter of:2026, the government’s elevated funding requirements have continued to drive sizeable bond issuances amid persistent fiscal pressures.
The issuance was evenly split, with N600.00 billion allocated to each of the 22.60 per cent FGN JAN 2035 (10-year) and 16.25 per cent FGN APR 2037 (20-year) bonds.
Demand was evenly distributed across both instruments, with the FGN JAN 2035 attracting N705.22 billion in subscriptions and the FGN APR 2037 receiving N708.27 billion, bringing total subscriptions to N1.41 trillion.
In a commentary note, Meristem Securities Limited said this represents the second-highest subscription level recorded this year, behind only the N2.70 trillion recorded in February, when investors rushed to lock in yields amid expectations of a declining interest-rate environment.Investing
The DMO allotted N600.90 billion and N621 billion across the JAN 2035 and APR 2037 bonds, respectively, resulting in a total allotment of N1.22 trillion. The bid-to-cover ratio moderated to 1.16x from 1.30x in the previous auction.
Consequently, the bid-to-cover ratio moderated to 1.16x from 1.30x in the previous auction, indicating that demand remained robust while the amount allotted increased in tandem.
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