The Federal Government plans to raise N1.8tn from the bond market in the first quarter of 2025, according to the Debt Management Office.
The proposed issuances, outlined in the recently released FGN Bond Issuance Calendar, consist of a mix of re-opened and new bonds across three monthly auctions scheduled for January, February, and March 2025.
This funding initiative is part of the government’s plan to cover a projected budget deficit of N13.08tn in 2025, representing 3.87% of the country’s GDP.
The bonds will be essential in financing vital infrastructure and bridging fiscal gaps.
The bonds will serve as a key tool for financing critical infrastructure and tackling fiscal gaps.
The bond calendar outlines the re-opening of the 19.30% FGN APR 2029 bond, with a remaining tenor of four years and three months.
The government intends to offer between N150bn and N200bn in each of the three auctions, making this bond a key component of the overall programme.
Similarly, the 18.50% FGN FEB 2031 bond, which has a tenor of six years and one month as of January 2025, will be re-opened and offered within the N150bn to N200bn range for each auction.
Furthermore, a new bond, the FGN JAN 2035, will be introduced to the market, aimed at investors seeking longer-term options.
With a 10-year original tenor, it will be offered within the N150bn to N200bn range.
If the government reaches the upper limit of the offer range in all three auctions, it could raise up to N1.8tn by the end of the quarter.
The auctions are set for January 27, February 24, and March 24, 2025.
While the calendar may be subject to adjustments, the structured approach underscores the government’s commitment to transparency and predictability in fulfilling its financing needs.
In 2024, the Federal Government borrowed an estimated N5.84tn from the FGN bond market as part of efforts to bridge its budget deficit for the year.
