Investors Overwhelm Nigeria's Bond Auction with ₦1.74tn

In July 2023, Nigeria's Debt Management Office (DMO) recorded total subscriptions of ₦1.74 trillion in a federal government bond auction, indicating strong investor demand. The auction, which offered ₦400 billion across three reopened bond instruments, saw subscriptions exceed the amount offered by ₦1.2 trillion.

The bonds included the 22.60% FGN January 2035 bond, the 16.2499% FGN April 2037 bond, and the 15.45% FGN June 2038 bond. The April 2037 bond attracted the highest interest, receiving 211 bids worth ₦665.19 billion, with ₦381.46 billion allotted.

The January 2035 bond had 184 bids totaling ₦555.47 billion, with ₦245.73 billion accepted, while the June 2038 bond attracted 161 bids worth ₦518 billion, with ₦302.13 billion allotted. The overall DMO allotment across the three bonds was ₦929.32 billion.

The auction results indicated a successful bidding margin rate of 18.34%, 18.35%, and 18.40% for the respective bonds, maintaining their original coupon rates.