FG plans to raise ₦1.8 trillion from bond market in Q1 2025

Nigeria's Federal Government is set to tap into the bond market to raise up to N1.8 trillion in the first quarter of 2025, as announced by the Debt Management Office (DMO). This ambitious plan, outlined in the newly released FGN Bond Issuance Calendar for Q1 2025, involves a combination of re-opened and new bonds to be auctioned off in January, February, and March 2025. 

𝗦𝗦&𝗖 𝗜𝗻𝘁𝗿𝗮𝗹𝗶𝗻𝗸 virtual data room is a secure digital platform that allows dealmakers easily and productively conduct high-value transactions— such as a merger, acquisition, IPO, capital raise or debt security offering — 𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 

This funding effort forms part of the government’s strategy to address a projected budget deficit of N13.08tn in 2025, equivalent to 3.87 per cent of the country’s Gross Domestic Product.

The released bond issuance calender highlights the FG plans to re-open two bonds and introduce a new one in Q1. The 19.30% FGN APR 2029 bond, with a remaining tenor of four years and three months, will be re-opened, offering between N150 billion and N200 billion in each of three auctions. 

Similarly, the 18.50% FGN FEB 2031 bond, with a tenor of six years and one month, will also be re-opened within the same offer range. 

A new bond, the FGN JAN 2035, will be introduced, targeting investors seeking longer-term instruments, with an original tenor of 10 years and an offer range of N150 billion to N200 billion 

The auctions are scheduled to take place on January 27, February 24, and March 24, 2025, although the calendar remains subject to adjustment.