Chief Bola Tinubu plans to borrow N2.5tn in the second FGN bonds auction for the year
This offering, as outlined by the Debt Management Office in a circular issued on Wednesday, comprises N1.25tn with a maturity date set for February 2031 and another N1.25tn with a 10-year tenor.
FGN savings bonds form a crucial component of the Federal Government’s domestic borrowing strategy.
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In 2023, approximately N7.06tn was raised by the government from the fixed-income market. This year (2024), the government anticipates its new borrowings to reach N7.83tn.
Notably, Chief Bola Tinubu had sought approval from the National Assembly for approximately $8.69bn and €100m as part of the external borrowing plan spanning from 2022 to 2024.
The newly issued FG bonds carry a face value of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are typically made semi-annually.
In the previous auction held in January, the FG offered a two-year FGN Savings bond due January 17, 2026, at 11.033 per cent per annum and a three-year FGN Savings Bond due January 17, 2027, at 12.033 per cent per annum.
The allotment for the two-year tenor bond was N603.42bn, while N1.394tn was allocated for the three-year bond.