DMO Raises N932bn in FGN Bonds on Tight Pricing Discipline
The Debt Management Office (DMO) under-allotted Federal Government of Nigeria (FGN) bonds to investors despite a top-notch subscription level at the auction conducted on Monday.
The authority held its monthly bond auction with three tenors worth N1.2 trillion on the table for investors’ subscriptions as part of efforts to fund the government’s 2026 budget deficit.
Nigeria’s Debt Managers’ reopening bond offer includes debt papers with JAN-2035, APR-2037, and JUN-2038 maturities, according to an auction circular obtained by MarketForces Africa.
Each bond class worth N400 billion were offered for subscription. Broadstreet fixed income market analysts and traders told MarketForces Africa that subscription came strong at about N1.7 trillion as investors continue to chase the naira assets.
Out of the huge subscription, the DMO allotted bonds totalling N931.8 billion across the reopened papers, reflecting a disciplined pricing stance of the authority.
The 10-Year reopening bond worth N400 billion was offered at the auction; subscription came in at N554.7 billion, and the DMO sold N245.73 billion to investors at the rate of 18.34%, the same as the previous auction.
Nigeria’s 20-Year reopening bond worth N400 billion was placed on offer, and it attracted N665.19 billion in subscriptions from risk-averse investors. The DMO allotted N381.46 billion at the marginal rate of 18.35%, and rejected the remaining bids.
The 15-year reopening bond worth N400 billion was also offered for subscription, and the long-duration asset attracted N518 billion, with total allotment settling at N304.63 billion, sold at 18.40%.
