The Federal Government raised N1.5tn through bonds at its February auction instead of the N2.5tn it was targeting.
The Debt Management Office in a press release on Tuesday disclosed that the 2031 bond had a total allotment of N873.53bn while that of the 2034 bond stood at N621.38bn.
Last week, the Federal Government sought to borrow N2.5tn via bonds; the second time it was approaching the fixed-income market this year.
It stated that the offerings consisted of N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor.
They are both newly created bonds and are offered at a unit price of 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 made semi-annually (twice a year).
The part of the statement read, “In an unprecedented development, the Debt Management Office raised N1.495tn Federal Government of Nigeria bonds at its monthly auction for February 2024.
“The DMO offered a N1.25tn 7-year FGN bond maturing in 2031 and another N1.25tn 10-year FGN bond maturing in 2034. For the offer, the DMO received total bids of N1.9tn, making it the highest it has received in any one FGN Securities Auction.”
It stated that at the close of the auction, N873.53bn was allotted for the 2031 FGN bond and N621.38bn for the 2034 FGN bond, making a total allotment of N1.495tn.
“The relatively large amount on offer was based on the FGN’s financing need, the opportunity to attract foreign investors, as well as, the premise that some local investors may be able to access pools of funds.”
In January, the DMO offered four 10-year reopened bonds, totaling N360bn.
According to the results, FG raised about N418.197bn from the four bonds that were auctioned.
