DEBUT 30-YEAR FGN BOND OVERSUBSCRIBED AT APRIL AUCTION

Investors keenly contested for the N20 billion 30-year FGN Bond offered by the Debt Management Office (DMO) at the April 2019 FGN Bond Auction. For the first time the DMO introduced the 30-year FGN Bond into the market at the April 2019 FGN Bond Auction which held on Wednesday April 24, 2019. A total subscription of N80.41 billion was received from investors for the N20 billion offered by the DMO for the 30-year Bond, representing a 400% subscription rate.

The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities.

With the success of the 30-year Bond offering, the DMO has reinforced its pioneering role in the Domestic Capital Market by introducing another longer-dated instrument which for the Government, represents appropriate funding  for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates, to access longer-term funding for their projects.

The DMO offered a total of N100 billion in tenors of 5, 10 and 30 years at the Auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150%. The DMO allotted a total of N97.40 billion to successful bidders at 14.50% for the 5-year, 14.55% for the 10-year and 14.80% for the 30-year FGN Bond.

DEBT MANAGEMENT OFFICE

The Presidency

NDIC Building (First Floor),

Plot 447/448 Constitution Avenue,

Central Business District,

P.M.B. 532, Garki, Abuja

Tel: +234 - 8110000881-3

Website: http://www.dmo.gov.ng,

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

April 24, 2019

PRESS RELEASE

DMO releases Public Debt Data for December 2018

The Debt Management Office (DMO) has released the Public Debt Data for December 2018. The Report which includes data on the composition of the Public Debt Data, also provided a breakdown of the Debt between the Federal and the State Governments (including the Federal Capital Territory).

The Report revealed that the Total Public Debt stood at N24.387 trillion or USD79.437 billion as at December 31, 2018 representing a year-on-year growth of 12.25%. Further details provided in the Report showed that more progress was made towards achieving the target Debt Stock mix of 60% (Domestic) and 40% (External). The share of Domestic Debt dropped to 68.18% from 73.36% as at December 31, 2017 thereby achieving a Mix of 68.18% and 31.82% in the Debt Stock. According to the DMO the strategy of using relatively cheaper and longer tenored external funds is achieving the expected objectives. Some of the Objectives were: to create more space for other borrowers in the domestic market, extend the average tenor of the debt stock in order to reduce refinancing risk and increase External Reserves. The implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills in 2018 and a general drop in the FGN’s borrowing rate in the domestic market from over 18% p.a. in 2017 to 14 – 15% p.a. in 2018.

The DMO stated that the FGN’s Domestic Debt Stock includes N331.12 billion Promissory Notes issued to Oil Marketing Companies and State Governments in December 2018.

The DMO stated that some of its major plans in 2019 are to undertake more of project-tied borrowing and access more external borrowing from Concessional Sources. Furthermore, the DMO announced plans to issue 30-year Federal Government of Nigeria Bonds (FGN Bonds) for the first time. The issuance of the Bond will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the FGN. Another area of focus will be the management of Risks associated with the Debt Stock to mitigate Debt Service Costs.

DEBT MANAGEMENT OFFICE

The Presidency

NDIC Building (First Floor),

Plot 447/448 Constitution Avenue,

Central Business District,

P.M.B. 532, Garki, Abuja

Tel: +234 - 8110000881-3

Website: http://www.dmo.gov.ng,

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

April 4, 2019