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FG issues N75 billion in 2017, 2019, 2022 bonds

The Federal government sold N75 billion worth of 5-year, 7-year and 10-year bonds maturing in 2017, 2019 and 2022 at a regular auction on Wednesday, … Continue reading FG issues N75 billion in 2017, 2019, 2022 bonds


The Federal government sold N75 billion worth of 5-year, 7-year and 10-year bonds maturing in 2017, 2019 and 2022 at a regular auction on Wednesday, the Debt Management Office (DMO) said on Thursday.

The debt office said it sold N25 billion of each paper.

The yield on the 5-year bond rose to 16.19 percent from 15.85 percent at last month’s auction. It issued the 7-year paper at 16.59 percent compared to 16 percent previously while the 10-year paper was issued at 16.30 percent from 16.21 percent at the last auction.

The original coupon rates of 15.10 percent and 16.39 percent for the April 2017 and January 2022 respectively will be maintained, while the coupon rate for the June 2019 was set at 16.00 percent, the DMO said in a statement.

Total subscriptions stood at N121.60 billion compared with N129.70 billion at the June auction.

The Federal government issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.