DMO Raises N614.5bn Through FGN Bond Auction

The Debt Management Office (DMO) has raised about N614.5 billion in the federal government’s May 2026 bond auction, with investors showing stronger appetite for the longer tenored paper.

According to the auction results released by the Debt Management Office, the funds were raised through the 22.60 per cent FGN JAN 2035 bond and the 16.2499 per cent FGN APR 2037 bond, two reopened instrument with an offering of N300 billion each.

Details of the auction showed that the 22.60 per cent FGN JAN 2035 bond attracted total subscriptions of N262.23 billion from 130 bids received, out of which 79 bids were successful. The DMO eventually allotted N137.67 billion on the bond, which has a remaining tenor of eight years and eight months.

Bid rates on the JAN 2035 instrument ranged from 15.00 per cent to 22.60 per cent, while the marginal rate settled at 17.00 per cent.
According to the DMO, successful bids on the bond were allotted at the marginal rate of 17.00 per cent, while the original coupon rate of 22.60 per cent remains unchanged. Investor demand, however, tilted more strongly towards the 16.2499 per cent FGN APR 2037 bond, driven largely by institutional investors and non competitive bids.

The APR 2037 instrument recorded 135 bids, with 96 bids accepted by the DMO. Total subscriptions stood at N253.94 billion, in addition to N280 billion in non competitive bids. Total allotment on the bond rose to N476.84 billion, significantly above the initial offer size of N300 billion.

The bond, which has a remaining tenor of 10 years and 11 months, recorded bid rates ranging between 14.00 per cent and 18.49 per cent, while the marginal rate closed at 17.04 per cent.

The DMO noted that successful bids for both instruments were allotted at their respective marginal rates of 17.00 per cent and 17.04 per cent.

Despite the lower allotment rates, the original coupon rates for the two bonds remain unchanged at 22.60 per cent for the JAN 2035 bond and 16.2499 per cent for the APR 2037 bond.