DMO Offers N300bn FGN Bonds

The Debt Management Office (DMO) will open N300 billion in FGN bonds for subscription at the primary market auction scheduled for today.

In a circular, the DMO announced a N300 billion May 2025 bond offering across two maturities. The debt office will open a 19.30% FGN bond maturing in Apr 2029 worth N100 billion for investors’ subscription on Monday.

Also, 19.89% local bonds maturing in May 2033, totaling N200 billion, will be offered for subscription as part of efforts to finance the 2025 budget. Analysts said the offer will be oversubscribed, reflecting an unending appetite for the naira assets on the back of elevated yields.

In a commentary note, AAG Capital Limited hinted that demand will be strong, saying the auction would be largely bid on by local investors as the market gradually responds to the latest Sukuk auction.

Analysts highlighted the Debt Office’s ability to gradually taper rates at its primary auction, coupled with a limited supply of duration over the past few months.

Banks and other asset managers have continued to increase bets on local bonds amidst disinflation, while the decision to keep interest rates at double-digit highs is expected to continue to fuel investors’ interest.

The Nigerian sovereign bonds market ended the week on a bullish note, with buying interest at the mid and long ends of the yield curve. Yields declined by 3 basis points and a basis point week on week at the mid- and long-tenor segments, respectively.

Meanwhile, the short end remained relatively stable. Afrinvest Limited said this drove a basis point decline in the average yield to 19.0%, reflecting cautious optimism among investors amid supportive macroeconomic signals, despite tight system liquidity.
Credit Market Force Africa.