The Debt Management Office (DMO) reported that the July FGN bond auction drew significant interest, with total subscriptions reaching N1.74 trillion. This figure surpassed the initial offer of N1.2 trillion by 45 percent, representing an excess of N540 billion. Despite this high demand, actual allotments dropped to N929.32 billion, a 23.8 percent decrease compared to the N1.22 trillion issued in June.
Three specific debt instruments were available: the 22.6 percent FGN JAN 2035, the 16.25 percent FGN APRIL 2037, and the 15.45 percent FGN JUN 2038, with each instrument initially allocated N400 billion. The APRIL 2037 bond proved to be the most popular, securing 122 successful bids worth N665.19 billion, and receiving the largest share of allotments at N381.46 billion. The JAN 2035 and JUN 2038 bonds brought in N245.73 billion and N302.13 billion respectively.
The auction resulted in clearing yields of 18.34 percent for the JAN 2035 bond, 18.35 percent for the APRIL 2037 bond, and 18.40 percent for the JUN 2038 bond. Pricing ranges varied by instrument, ranging from 16 to 22.6 percent for the JAN 2035 bond, 16 to 19.58 percent for the APRIL 2037 bond, and 17 to 20.45 percent for the JUN 2038 bond. These figures highlight persistent investor confidence in Nigerian government securities, notwithstanding the recent tightening of total allotments.
