The Debt Management Office (DMO) has disclosed that Federal Government of Nigeria raised N626.813 billion in its April 2024 FGN bond auction.
This amount is about 32% higher than the N475.67 billion raised in the previous month’s auction. The significant capital inflow was garnered through the sale of long-term securities, divided across three distinct bond series with varying maturities.
The auction, which took place on April 15, 2024, showcased robust investor interest, particularly for the 10-year bond. This instrument alone attracted a substantial total subscription of N550.828 billion, indicating high market confidence in the government’s credit.
The offerings were structured as follows:
The competitive yield environment was evident in the range of bids received, spanning from as low as 14.00% to as high as 24.00%, reflecting diverse market expectations and appetite for risk.
The bonds were eventually allotted at marginal rates of 19.30% for the five-year, 19.75% for the seven-year, and 20.00% for the 10-year bonds.
These rates signal a modest increase compared to previous auctions, aligning with the government’s strategy to manage its cost of borrowing while addressing the substantial fiscal demands.