DMO returns to popular 2038 bond with fresh N600 billion offer
The Federal Government is returning to one of its most frequently issued bonds as it looks to raise another N1 trillion from investors on Monday, September 14. The post DMO returns to popular 2038 bond with fresh N600 billion offer appeared first on Nairametrics .
The Federal Government plans to return to a popular bond with a fresh N600 billion offer on September 14 to raise more funds. Among the N1 trillion being offered, N600 billion will be from reopening the 15.45% FGN June 2038 bond, while the remaining N400 billion will come from a new bond maturing in September 2036. This indicates that 60% of the government's funding aims to come from a bond that has been issued multiple times since its introduction in June 2023.
The June 2038 bond has become crucial for the government's borrowing, especially in 2026, with about N2.42 trillion worth of the bond already outstanding. If the DMO successfully sells N600 billion at Monday's auction, the total value issued could surpass N3 trillion. The reopening of an existing bond enables the government to raise additional funds using a security that investors are already familiar with, avoiding the need to create a new bond every time it requires financing.
The government's borrowing plans are shifting towards the domestic bond market, which has seen a decrease in interest rates, making it an attractive option for borrowing at cheaper rates.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
