GOVERNMENT TO SECURE N2.5 TRILLION THROUGH BOND ISSUANCE – DEBT MANAGEMENT OFFICE

The Nigerian government aims to raise N2.5 trillion through its second auction of FGN bonds this year, according to the Debt Management Office (DMO). In a circular released on Wednesday, the offerings include N1.25 trillion maturing in February 2031 and N1.25 trillion with a 10-year tenor.

FGN savings bonds form part of the Federal Government’s domestic borrowing strategy. In the previous year, the government garnered approximately N7.06 trillion from the fixed income market. This year, it anticipates new borrowings to reach N7.83 trillion.

President Bola Tinubu sought National Assembly approval for $8.69 billion and €100 million as part of the external borrowing plan for 2022 to 2024.

The latest FG bonds carry a face value of N1,000, requiring a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds occur semi-annually.

In January, the government offered a two-year FGN Savings bond maturing on January 17, 2026, at 11.033 percent per annum and a three-year FGN Savings Bond maturing on January 17, 2027, at 12.033 percent per annum. The allotment was N603.42 billion for the two-year bond and N1.394 trillion for the three-year bond (source: PunchNews).

Content Source: Techeconomy