The Debt Administration Workplace (DMO) has reported a powerful present of investor urge for food at its November 2025 public sale of presidency bonds, with whole bids reaching roughly N657 billion, representing greater than 120% of the mixed provide dimension of N460 billion.
The public sale, held on 24 November 2025 with settlement scheduled for 26 November 2025, featured two reopened devices:
A 5-year bond: the 17.945% FGN Aug 2030 re-opening (maturing 27 August 2030) with a proposal dimension of N230 billion.
A 7-year bond: the 17.95% FGN Jun 2032 re-opening (maturing 25 June 2032) additionally provided at N230 billion.
For the 5-year Aug 2030 concern: whole bids amounted to N147.869 billion, with allotment of N134.799 billion. The marginal price at which profitable bids have been allotted was 15.9%.
For the 7-year Jun 2032 concern: whole bids soared to N509.392 billion, with allotment of N448.722 billion (plus a non-competitive allotment of N6 billion). The marginal price was 16%.
Though the coupon charges of 17.945% (5-year) and 17.95% (7-year) stay unchanged, the pricing to buyers by way of allocation was decided on the idea of the public sale yields (marginal charges).
The overwhelming demand for the 7-year bond, with bids of N509 billion versus the provide dimension of N230 billion, highlights investor desire for longer-dated paper within the present surroundings. The close to >2x subscription ratio for the 7-year in comparison with the 5-year (which was undersubscribed relative to the provide) suggests buyers are assured in holding longer maturities.
The marginal yields of 15.90% and 16.00% are notable: whereas demand was sturdy, buyers look like demanding larger returns, probably reflecting inflation expectations, foreign money threat, or broader macro-economic considerations.
By reopening present bonds fairly than issuing new ones, the Federal Authorities is continuous to elongate maturities and deepen the home debt market — two of the acknowledged aims of FGN bond issuance.
The oversubscription in mixture (by about 120% of provide dimension) alerts confidence amongst institutional buyers in sovereign paper, even amid inflationary and foreign money threat. On the identical time, the upper yields sign warning.
In line with the DMO, the bond issuance was carried out in compliance with the Debt Administration Workplace (Institution) Act, 2003, and the Native Loans (Registered Inventory and Securities) Act, CAP. L17, Legal guidelines of the Federation of Nigeria 2004.
