FG To Borrow ₦2.5tn Through Bond – DMO
The Nigerian Federal Government plans to raise ₦2.5 trillion in its second FGN bonds auction.
In a circular issued on Wednesday, the Debt Management Office stated that the offerings consisted of ₦1.25 trillion with a maturity date of February 2031 and ₦1.25tn with a 10-year tenor.
FGN savings bonds are part of the federal government’s domestic borrowing plan.
Last year, the Federal Government raised about ₦7.06tn from the fixed-income market.
According to the recently signed ₦28.8 trillion 2024 national budget, the Federal Government has projected its new borrowings to hit ₦7.83 trillion.
Recall that in December last year, President Bola Tinubu had sought approval from the National Assembly for about $8.69bn and €100m as part of the external borrowing plan for 2022 to 2024.
The latest FG bonds have a face value of ₦1,000, with a minimum subscription requirement of ₦50,001,000 and subsequent increments in multiples of ₦1,000.
Interest payments on FGN bonds are usually semi-annual.
In January, the FG had offered a two-year FGN Savings bond due January 17, 2026, at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027, at 12.033 per cent per annum.
It allotted ₦603.42bn for the two-year tenor bond and ₦1.394tn for the three-year bond.