Business News

FG raises N627 billion in April bond auction amid competitive yields 

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.