DMO To Raise N459bn In Bonds

The Debt Management Office (DMO) has opened a call for subscription for the March 2024 Federal Government (FGN) Bond offer through which it intends to raise N450 billion which is much less than N2.5 billion which it had set out to raise last month.

In February, the debt office had raised two new bonds hoping to raise N1.2 5 billion each from FGN FEB 2031 7-Year and FGN FEB 2034 10-Year bonds. It could however only raise around half of its intended sale of N2.5 trillion in seven and 10-year bonds as the low interest rates on offer curbed investor appetite.
The two bonds were subscribed to the tune of N1.49 trillion with the seven-year tenor bond raking in N873.5 billion, 69.6 percent of the amount offered while the 10-year bond got N621.38 billion, 49.6 percent of the total offer.

In the March 2024 offer, the DMO is planning to raise N150 billion through a new 3-year FGN MAR 2027 bond and N150 billion each form the re-issuance of the 18.50% FGN FEB 2031 7-year paper and 19.00% FGN FEB 2034 10-year paper.

The rates on the bond offers are however less than the 22.75 per cent benchmark interest rate and 29.9 per cent inflation rate in the country.