Nigeria’s Debt Management Office (DMO) has raised N1.2219 trillion in its June bond auction after investors submitted bids worth N1.413 trillion, exceeding the N1.2 trillion on offer by N213.5 billion.
The DMO had offered N600 billion each in two reopened benchmark bonds: the 22.60 per cent FGN January 2035 bond and the 16.2499 per cent FGN April 2037 bond. Due to strong demand, the office accepted subscriptions above the initial target.
The 22.60 per cent FGN January 2035 bond drew the most interest, attracting N705.22 billion from 179 bids.
The DMO accepted 135 bids and allotted N600.90 billion at a marginal rate of 18.34 per cent. Coupon rates for the January 2035 bond and the April 2037 bond remain unchanged at 22.60 per cent and 16.2499 per cent respectively.
The oversubscription shows investors remain willing to commit capital to federal government debt even as marginal rates settle below the bonds’ coupon rates.
The auction is part of the federal government’s domestic borrowing programme to fund budgetary needs and manage public debt obligations. Raising over N1.2 trillion in one auction ranks among the larger domestic debt issuances in recent months.
The DMO said the result reflects growing capacity in Nigeria’s domestic debt market, supported by expanding institutional participation and rising pension assets.
