DMO Raises N662bn Through FGN Bonds

The Debt Management Office (DMO) said, it raised N662.61 billion at the first Federal Government of Nigeria Bond Auctions for the year, as N225.88 billion, $69.96  million and €133.76 million in promissory notes by the government will be due for payment this year.

According to the schedule of promissory notes issued by category as at September 30, 2022 which was released by the DMO, the promissory notes were owed to oil marketing companies, state governments, exporters, local contractors as well as judgement creditors

The maturing Promissory notes in 2023 is part of N516.991 billion $785.79 million and €133.76 million that is outstanding from  the total issue size of N1.40 trillion, $785.79 million €133.76 million

Of the amount to mature this year, oil marketing companies are to be paid N84.62 billion while local contractors will be getting N57.82 billion, $26.48 million and €133.76 million. Exporters will also be getting N53.79 billion as state governments get N29.63 billion.

Meanwhile, DMO, at the first bond auction for 2023, had raised more than twice the N360 billion it set out to raise from the re-openings of the 10-, 20- and 30-year bonds.

The January bond auction result shoed that as against N90 billion that was planned to be raised through the 13.98% FGN FEB 2028 paper, the debt office had allotted N144.533 billion out of the subscription of N191.98 billion at a marginal rate of 14 per cent.

Also, allotment under the 16.2499 per cent FGN APR 2037 bond stood at N232.466 billion from a subscription of N260.466 billion at a marginal rate of 15.8 per cent higher than the N90 billion it planned to raise. 

Similarly, N220.574 billion was raised through the 14.80 per cent FGN APR 2049 paper at a marginal rate of 15.9 per cent. It however raised less than the N90 billion it planned to raise through the 12.50 per cent FGN APR 2037 paper with an allotment of N65.04 billion from the N91.14 billion subscription at a marginal rate of 14.9 per cent.