DMO Confirms June 25 Settlement for N100 Billion Bond Auction

|By Adejumo Adekunle-

-DMO Concludes N100 Billion Bond Auction Amid Strong Investor Appetite
– Over N561 Billion Subscribed as Investors Target 17.95% Coupon Rate

Nigeria’s Debt Management Office (DMO) has confirmed that settlement for the recently concluded N100 billion bond issuance will take place on Wednesday, June 25, 2025, signaling the end of a highly successful auction that drew intense investor interest and massive oversubscription.

The auction, conducted on Monday, June 23, featured two tranches of N50 billion each, forming part of the Federal Government’s 2025 borrowing strategy. The initiative aims to fund the national budget and manage Nigeria’s rising debt levels sustainably through domestic financing.

In a statement, the DMO revealed that the newly issued 7-year bond, offering a 17.95% coupon rate and maturing on June 25, 2032, emerged as the most sought-after instrument. It attracted 209 bids worth N561.17 billion — over 11 times the offer size — reflecting heightened market confidence. Ultimately, 41 bids were successful, and N98.95 billion was allotted, effectively completing the N100 billion offer.

The second offering, a reopening of the 19.30% FGN APR 2029 bond (5-year tenor), cleared at a marginal rate of 17.75%, slightly below its coupon rate. However, the DMO clarified that the original 19.30% coupon remains in force for periodic interest payments.

Each bond is priced at N1,000 per unit, with a minimum subscription threshold of N50,001,000, and incremental purchases allowed in multiples of N1,000. Investors are guaranteed semi-annual interest payments, while principal will be repaid in full at maturity through a bullet repayment structure.

The DMO reaffirmed that both instruments align with the Federal Government’s strategy to deepen the domestic debt market and attract long-term capital.

As of Q1 2025, Nigeria’s total public debt stood at N101.9 trillion, with domestic debt making up around 60% of the total. Despite mounting concerns, the DMO insists that the debt profile remains sustainable, attributing this to ongoing fiscal reforms and intensified revenue mobilisation efforts.