According to a report on Tuesday from the Debt Management Office (DMO) of Nigeria, the auction, which took place on July 28, with settlement scheduled for July 30, 2025, saw significant participation from both institutional and individual investors.
Federal Government of Nigeria (FGN) attracted a diverse range of investors seeking opportunities in the Nigerian fixed-income market, with the auction of two re-opening bonds: the 19.30% FGN APR 2029 (a 5-Year Bond) and the 17.95% FGN JUN 2032 (a 7-Year Bond).
For the 19.30% FGN APR 2029 bond, maturing on April 17, 2029, the DMO offered ₦20 billion.
Investors placed 40 bids, demonstrating a strong appetite for this tenor, with 15 successful bids.
The total subscription for this bond reached an impressive ₦39.075 billion, indicating that investors were willing to commit nearly double the amount offered. Ultimately, ₦13.430 billion was allotted.
Bids from investors ranged from 15.0000% to 20.0000%, with the marginal rate settling at 15.6900%. This marginal rate reflects the yield at which the last successful bid was accepted, providing a benchmark for investors.
The 17.95% FGN JUN 2032 bond, with a maturity date of June 25, 2032, saw even more enthusiastic participation. The DMO offered ₦60 billion, and investors responded with a remarkable 109 total bids, resulting in 59 successful bids.
The demand for this longer-dated bond was exceptionally high, with subscriptions soaring to ₦261.597 billion – over four times the amount offered. This strong oversubscription highlights investors’ confidence in the long-term prospects of Nigerian government securities. A substantial ₦172.502 billion was allotted for this bond.
Investors’ bids for this bond ranged from 15.0000% to 19.0000%, and the marginal rate was 15.9000%.
Despite the marginal rates at which successful bids were allotted (15.69% for the 5-Year Bond and 15.90% for the 7-Year Bond), the original attractive coupon rates of 19.30% for the FGN APR 2029 bond and 17.95% for the FGN JUN 2032 bond will be maintained. This ensures that investors who successfully secured these bonds will continue to receive these higher interest payments, making them a desirable asset in their portfolios. The robust participation and oversubscription in both tranches underscore the continued interest of both domestic and international investors in Nigeria’s FGN Bonds, reflecting their assessment of the country’s economic stability and investment opportunities.
