In an announcement made on Wednesday, the DMO disclosed that the bond offerings include N1.25 trillion with a maturity date of February 2031, and an additional N1.25 trillion maturing in February 2034. These bonds are part of the Federal Government’s domestic borrowing plan and will be issued as FGN savings bonds.
The circular released by the DMO outlined the auction details, stating that subscriptions are open for N1,250,000,000,000.00 FGN FEB 2031 (7-Year NEW) and N1,250,000,000,000.00 FGN FEB 2034 (10-Year NEW).
The auction is scheduled for February 19, 2024, with settlement to occur on February 21, 2024.
In 2023, the Federal Government raised approximately N7.06 trillion from the fixed-income market. This year, it aims to increase its borrowings to N7.83 trillion.
The newly offered Federal Government bonds have a face value of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on these bonds are made semi-annually.
Previously in January, the Federal Government issued two-year and three-year FGN Savings bonds with interest rates of 11.033% and 12.033% per annum, respectively. It allocated N603.42 billion for the two-year bond and N1.394 trillion for the three-year bond.