FG targets N2tn from investors in November bond auction
AI Executive Briefing
Gemini Flash AI~45s readThe Federal Government is returning to the domestic debt market to raise N2tn through the reopening of four existing bond instruments. This auction aims to secure fresh funding by offering securities maturing between 2028 and 2033 to investors.
Context & Background
- ✦The bonds are backed by the full faith and credit of the Federal Government and qualify as liquid assets for banks and eligible investments for trustees.
- ✦The move follows a period of declining government securities allotments, which dropped by 55.86 per cent in October due to weaker demand and unallotted bids.
Key Figures & Named Entities
Debt Management Office (DMO):The agency managing the auction and issuing the offer circular.N2tn:The total target amount for the November bond auction.
Outlook & Next Steps
The auction is scheduled for November 16, with settlement expected on November 18, following which the securities will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
Key Takeaways
AI Summary- The Federal Government is seeking to raise N2tn through a November bond auction by reopening four existing securities.
- The auction features bonds maturing between March 2028 and May 2033, with the August 2030 instrument holding the largest share at N750bn.
- The bonds are listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, qualifying as liquid assets for banks and eligible investments for trustees.
Key Facts:November 16 and 18: The Debt Management Office scheduled the bond auction for November 16, with settlement set for November 18.October 2026: Government securities allotments in the primary market fell by 55.86 per cent to N9.501tn in October from N21.527tn in September.
Editorial Excerpt
The Federal Government is seeking to raise N2tn from investors by reopening four existing securities in its November bond auction, the DMO has said.
Frequently Asked Questions About This Story
How are the bonds in the November auction structured?
The offer is divided into four instruments maturing between March 2028 and May 2033, with coupon rates ranging from 17.945 per cent to 21 per cent.
Who are the authorized participants for the bond auction?
Investors can participate through Primary Dealer Market Makers, including Access Bank, First Bank, Stanbic IBTC, Citibank, United Bank for Africa, Guaranty Trust Bank, and Zenith Bank.
