DMO Offers 15.74% on 2033, 2034 reopened Bonds

Nigeria’s Debt Office has priced local bonds expiring in 2032 and 2033 at the rate of 15.74%, according to results from a monthly auction conducted on Monday.

Also, the reopened bond for 2034 was sold to investors at 15.50%, while the authority underwrote its offer despite aggregate subscription of about N1.7 trillion.

The Debt Management Office (DMO) opened N800 billion worth of Federal Government of Nigeria (FGN) bonds for subscription as part of efforts to finance the 2026 budget deficit.

Total subscription reached N2.7 trillion, according to auction results.  The authority reopened the 17.95% FGN JUN 2032, totalling N400 billion, 19.89% FGN MAY 2033, worth N300 billion, and 19.00% FGN FEB 2034, with an offer size of N100 billion.

Investors staked N851.59 billion against 17.95% FGN JUN 2032 bonds, but N188.14 billion was allotted at 15.74%. The total subscription for the 19.89% FGN MAY 2033 was N874.69 billion, and the DMO allotted N208.63 billion to successful investors.

Bids for the 19.00% FGN FEB 2034 bond came in higher at N972.93 billion, while N127.51 billion was approved for sale to investors at 15.50%. In total, DMO raised N524.28 billion, which is less than N800 billion that the authority offered at the auction