The Debt Management Office yesterday said it will auction N360 worth of FGN Bonds to domestic investors this month in continuation of the Federal government’s efforts to borrow N11 trillion to fund the 2023 budget. Under the 2023 budget, the Federal Government plans to raise new borrowings of N9.32 billion comprising N7.4 trillion from domestic sources and N1.8 trillion from foreign sources. Announcing the plans to an offer circular released yesterday the DMO said it will auction N360 billion worth of FGN bonds adding that the auction will open on April 17 and settlement will hold on April 19 2023. The bonds to be auctioned are 13.98% FGN FEB 2028 (10-Yr Re-opening)-N90 billion; 12.50% FGN APR 2032 (10-Yr Re-opening)-N90 billion; 13.00% FGN JAN 2042 (20-Yr Re-opening)-N90 billion; and 12.98% FGN MAR 2050 (30-Yr Re-opening)-N90 billion. Last month, the DMO sold ¦ 563.4 billion worth of bonds following a 125 per cent oversubscription to the N360 billion worth of FGN bonds offered by the agency. Investors’ demand came in strong, with total subscriptions of N808. 6 billion. Vanguard analysis showed that the DMO in the first quarter, Q1’23 offered N1.08 trillion worth of FGN bonds while it sold N1.89 trillion. Analysts project that the oversubscription for FGN bonds auction in April citing strong demand for government securities and other fixed-income investments occasioned by the high-interest rate regime triggered by the inflation-fighting measures of the Central Bank of Nigeria, CBN. Reflecting this trend, Pension Fund Administrators, PFAs, increased pension fund investment in Federal Government debt instruments (securities) by 16.5 per cent, year-on-year to N9.9 trillion in February from N8.5 trillion in 2022.

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