DMO Launches N1.2 Trillion Bond Auction in Nigeria

The Debt Management Office (DMO) of Nigeria conducted a bond auction on June 22, 2023, offering a total of N1.2 trillion across three re-opened maturities. The issuance is part of the government's strategy to reinforce funding requirements amid ongoing fiscal pressures.

The offer was evenly split, with N400 billion allocated to each of the following bonds: 22.60% FGN Jan 2035 (10-year), 16.25% FGN Apr 2037 (20-year), and 15.45% FGN Jun 2038 (15-year). This auction marks the largest bond issuance record, surpassing previous records of N600 billion in May and N900 billion in January.

Demand was robust, with the FGN Jan 2035 bond attracting N705.22 billion in subscriptions and the FGN Apr 2037 bond receiving N708.27 billion, bringing total subscriptions to N1.41 trillion. The DMO allotted N600.90 billion and N621 billion across the Jan 2035 and Apr 2037 bonds, respectively, resulting in a total allotment of N1.22 trillion and a bid cover ratio of 1.16x.