FG raises N346.2bn from bond auction in November 2024

The Federal Government has raised over N346.155 billion at its November 2024 bond auction, reflecting higher allotments despite a reduction in the amount offered.

The auction, conducted by the Debt Management Office (DMO) on November 18, 2024, featured reopenings of the 19.30% FGN APR 2029 (5-Year Bond) and the 18.50% FGN FEB 2031 (7-Year Bond).

Compared to October, the November auction saw a 33.33% reduction in the total amount offered.

 The DMO placed N60 billion on offer for each bond, a drop from N90 billion in October. Despite the lower offerings, total allotments rose significantly, climbing by 19.50% to N346.155 billion from N289.597 billion in October.

For the 5-year Bond, N63.530 billion was allotted, while the 7-year Bond recorded an allotment of N282.625 billion. In contrast, the October auction allotted N57.237 billion and N232.360 billion for the 5-year and 7-Year Bonds, respectively.

The total amount offered at the auction was N120 billion, evenly split at N60 billion for each bond series.

However, investor interest far exceeded expectations, with total bids amounting to N369.585 billion—a 208% subscription rate. This oversubscription highlights the market’s appetite for fixed-income instruments amid evolving macroeconomic conditions.

Investor demand remained strong but moderated slightly, with total subscriptions in November reaching N369.585 billion, a 5.06% decline from October’s N389.321 billion.

The 5-Year Bond attracted N75.560 billion in subscriptions, up from N60.737 billion in October. Conversely, the 7-year Bond saw subscriptions drop to N294.025 billion from N328.584 billion.