The Debt Management Office (DMO), on Wednesday announced plan to auction N360 worth of FGN Bonds to domestic investors this month as part of efforts of the Federal government’s efforts to borrow N11 trillion to fund the 2023 budget.
The Federal Government plans to raise new borrowings of N9.32 billion comprising N7.4 trillion from domestic sources and N1.8 trillion from foreign sources.
The DMO which announced the plan for the bund in a circular said it will auction N360 billion worth of FGN bonds adding that the auction will open on April 17 and settlement will hold on April 19 2023.
The bonds to be auctioned are: 13.98% FGN FEB 2028 (10-Yr Re-opening)-N90 billion; 12.50% FGN APR 2032 (10-Yr Re-opening)-N90 billion; 13.00% FGN JAN 2042 (20-Yr Re-opening)-N90 billion; and 12.98% FGN MAR 2050 (30-Yr Re-opening)-N90 billion.
Last month, the DMO sold N563.4 billion worth of bonds following 125 per cent oversubscription to the N360 billion worth of FGN bonds offered by the agency. Investors’ demand came in strong, with total subscriptions of N808. 6 billion.