Investors flood FG bond auction as subscriptions hit ₦1.74tn in July

Nigeria's Federal Government bond auction in July saw overwhelming investor interest, with total subscriptions reaching ₦1.74 trillion against the ₦1.2 trillion offered.

The Debt Management Office (DMO) reported strong demand for three reopened bond instruments. Investors oversubscribed the auction by approximately ₦538.66 billion, demonstrating significant confidence in the government's debt instruments.

The auction featured the reopening of the "22.60% FGN JAN 2035," "16.2499% FGN APR 2037," and "15.45% FGN JUN 2038" bonds, with ₦400 billion offered for each. The "16.2499% FGN APR 2037" bond was the most sought-after, attracting 211 bids totaling ₦665.19 billion. The DMO successfully allotted ₦381.46 billion for this instrument.

Substantial interest was also shown in the "22.60% FGN JAN 2035" bond, which received 184 bids amounting to ₦555.47 billion, resulting in an allotment of ₦245.73 billion. The "15.45% FGN JUN 2038" bond attracted 161 bids worth ₦518 billion, with 92 successful bids and an allotment of ₦302.13 billion, including a ₦50 billion non-competitive bid. In total, the DMO allotted ₦929.32 billion across all three instruments.

Successful bids for the January 2035, April 2037, and June 2038 bonds were allotted at marginal rates of 18.3400%, 18.3500%, and 18.4000% respectively, while maintaining their original coupon rates. These monthly auctions are closely monitored as key indicators of financial market liquidity, investor confidence, and prevailing interest rate expectations.