By G9ija

The Federal Government of Nigeria raised the sum of N724.9 billion through the instrument of bond auction in February 2023.

The Debt Management Office (DMO) volunteered this information on its website.

According to the DMO, the figure represents an upsurge of 100 percent in comparison with the same period of last year.

It clarified that the auction, held on February 13, 2023, and witnessed a total of 577 bids worth N724.9 billion, culminating in a total amount offered of N360 billion.

The statement revealed that the total amount allotted was N771.56 billion, with successful bids allotted at marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%.

The original coupon rates for each bond will be maintained, with successful bids for the 13.98% FGN FEB 2028 (10-Year Bond), 12.50% FGN APR 2032 (10-Year Bond), 16.2499% FGN APR 2037 (20-Year Bond), and 14.80% FGN APR 2049 (30-Year Bond) being allotted at the marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%, respectively.

The settlement date for the auction was February 15, 2023, with maturity dates set for February 23, 2028, April 27, 2032, April 18, 2037, and April 26, 2049, respectively.

The DMO explained on its website that the auction was part of its efforts to raise funds for the implementation of the Federal Government’s 2023 budget and to finance critical infrastructure projects across the country.

It stated, “The DMO has been actively promoting the issuance of FGN bonds as a means of diversifying the country’s funding sources and reducing its dependence on short-term borrowing.

“The FGN bond market has grown significantly in recent years, with a wide range of maturities and attractive yields for investors.

“Overall, the results of the February 2023 FGN bond auction highlight the continued strong demand for FGN bonds and the government’s commitment to meeting its funding needs through the capital markets.”