Bonds
Nigeria Raises N724.9 Billion in February 2023 Federal Government Bond Auction
A total of 577 bids worth N724.9 billion were received for the N360 billion amount offered, with the total amount allotted being N771.56 billion.
The Debt Management Office (DMO) in Nigeria has announced that it raised N724.9 billion in the Federal Government bond auction held on February 13, 2023.
This marks a 100% increase compared to the previous year. A total of 577 bids worth N724.9 billion were received for the N360 billion amount offered, with the total amount allotted being N771.56 billion, Investors King reports.
Successful bids were allotted at marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%, respectively, for the 10-year, 10-year, 20-year, and 30-year bonds. The auction was part of the DMO’s efforts to raise funds for the implementation of the Federal Government’s 2023 budget and to finance critical infrastructure projects across the country.
While Nigeria’s rising debt profile has been a topic of concern, the DMO has been actively promoting the issuance of FGN bonds as a means of diversifying the country’s funding sources and reducing its dependence on short-term borrowing.
The FGN bond market has grown significantly in recent years, with a wide range of maturities and attractive yields for investors.
The success of the February 2023 FGN bond auction highlights the continued strong demand for FGN bonds and the government’s commitment to meeting its funding needs through the capital markets.
The settlement date for the auction was February 15, 2023, and the bonds will mature between February 2028 and April 2049.