The Federal Government is set to raise N2.5 trillion through its upcoming FGN bonds auction, according to the Debt Management Office (DMO).
The offerings include N1.25 trillion each with maturity dates of February 2031 and a 10-year tenor.
The issuance of FGN savings bonds forms a crucial component of the Federal Government’s domestic borrowing strategy, as outlined by the DMO in a circular released on Wednesday.
Recall that last year, the government successfully raised approximately N7.06 trillion from the fixed income market, with this year’s borrowing projections slated to reach N7.83 trillion.
President Bola Tinubu recently sought approval from the National Assembly for external borrowings totaling $8.69 billion and €100 million, spanning from 2022 to 2024.
The newly offered FGN bonds, each with a face value of N1,000, require a minimum subscription of N50,001,000, with subsequent increments in multiples of N1,000. Interest payments on these bonds are made semi-annually.
In January, the Federal Government issued FGN Savings bonds with varying tenors, offering attractive interest rates of 11.033% per annum for a two-year bond and 12.033% per annum for a three-year bond.
The total allotment for these bonds amounted to N603.42 billion for the two-year tenor and N1.394 trillion for the three-year tenor.
