The Debt Management Office (DMO) has successfully raised ₦100 billion through the issuance of two Federal Government bonds in its June 2025 auction.
The auction, conducted on Monday, June 23, 2025, featured two bond offerings, each with a face value of ₦50 billion. These issuances are part of the government’s strategy to finance the 2025 national budget and manage public debt obligations through domestic borrowing.
The first offering was a five-year reopening bond with a coupon rate of 19.30%, maturing on April 17, 2029. It received 30 bids amounting to ₦41.685 billion in subscriptions, reflecting significant investor interest. However, only two bids were successful, resulting in an allotment of ₦1.050 billion.
The second offering, a newly issued seven-year bond with a 17.95% coupon rate, is set to mature on June 25, 2032. This bond attracted 209 bids totaling ₦561.170 billion in subscriptions. Of these, 41 bids were successful, with ₦98.950 billion allotted.
The combined allotments met the DMO’s target of ₦100 billion for the auction. The marginal rates for the successful bids were set at 17.75% for the five-year bond and 17.95% for the seven-year bond. Despite the lower marginal rate for the five-year bond, the DMO confirmed that the original coupon rate of 19.30% will remain unchanged.
The issuance was carried out in compliance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
Each unit of the bonds is priced at ₦1,000, with a minimum subscription amount of ₦50,001,000. Additional subscriptions must be made in multiples of ₦1,000.
Although the coupon rates are predetermined, the DMO said successful bidders at the auction pay a price based on the yield-to-maturity that clears the offered volume, along with any accrued interest from the last interest payment date up to the settlement date.
Interest on both bonds is payable semi-annually, providing bondholders with regular income during the tenor of the instruments.
The bonds will be repaid in full on their respective maturity dates through bullet repayment, meaning the principal will be paid back in a single lump sum.
Settlement for the bonds is scheduled for Wednesday, June 25, 2025.