FG seeks N450 billion from June 2024 bond auction

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The Federal Government of Nigeria aims to raise at least N450 billion through its June 2024 bond offer, as announced by the Debt Management Office (DMO). The bond auction, scheduled for June 24, 2024, with settlement on June 26, 2024, includes three different re-openings: N150 billion at 19.30% FGN APR 2029 (5-Year Re-opening), N150 billion at 18.50% FGN FEB 2031 (7-Year Re-opening), and N150 billion at 19.89% FGN MAY 2033 (9-Year Re-opening).

The bond issuance, conducted by auction, requires a minimum subscription of N50,001,000, with subsequent bids in multiples of N1,000. The legal framework for this offer is provided by the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.

The bond auction was rescheduled from June 17, 2024, to June 24, 2024, due to the Eid Al-Adha public holiday. The primary goal of this bond offer is to support the government’s fiscal policies and infrastructure projects. By attracting both local and international investors, the government aims to increase financial inflow into the economy, finance key projects in various sectors, and reduce reliance on external borrowing.

In the previous month’s auction, despite oversubscription, the government raised N380.769 billion, falling short of the N450 billion target, with a significant portion coming from non-competitive allotments, indicating sustained interest from institutional investors.

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