DMO to Reopen N700bn Nigerian Bonds for Subscriptions
The Debt Management Office (DMO) has released the awaited bond circular for the month, with a plan to auction a total of N700.0 billion across the 5-, 7-, and 10-year re-openings.
In April, the debt managers will supply reopened bonds, and analysts anticipate tight rates across 17.945% FGN AUG 2030, 17.95% FGN JUN 2032 and 22.60% FGN JAN 2035 offers.
The fixed-income market traded quietly as investors’ appetite for government borrowing instruments remained subdued. Traders said they saw minimal activity at the mid-segment (+4bps) of the curve, leading average yields to inch up by 1bps to 15.93%.
On April 27, the Debt Office will return to the market to raise N700 billion across reopened local bonds. Coupons for the Re-openings of previously issued bonds are already set.
Investment analysts said successful bidders will pay a price equal to the yield-to-maturity bid that clears the auction volume, plus any accrued interest on the instrument.
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria. UBA, Zenith Rally Boost NGX Index, Investors Gain N861bn
