FG earns N1.53tn revenue from debt securities

The Federal Government has recorded a total of N1.53tn from debt securities issued so far in the year.

These debt securities are Federal Government bonds, savings bonds, green bonds and treasury bills.

Latest data obtained from the Debt Management Office revealed that the highest amount of revenue of N804.6bn was recorded from treasury bills.

In July, the DMO auctioned N223.22bn worth of treasury bills while it received N374.13bn and allotted N223.22bn.

On August 11, another N34.38 worth of treasury bills was auctioned. The DMO received N146.53bn subscription and allotted N34.38bn.

On August 28, a total subscription of N347.77bn was received on N208.6bn treasury bills offered. The DMO only allotted the needed N208.6bn.

The September 11 N158.65bn treasury bills auction had a total subscription of N325.89bn while N158.65bn was allotted.

On September 18, another N179.75bn worth of treasury bills was auctioned, which saw a total subscription of N376.78bn.

The Federal Government saw its second highest revenue of N703.74bn from FG bonds.

In January, the DMO offered N150bn worth of bonds, consisting of the reopening APR2023 N50bn bond at 12.75 per cent, the reopening MAR2025 N50bn bond at 13.53 per cent and the reopening FEB2028 bond at 13.98 per cent.

The DMO said a total subscription of N197.09bn was received on the total N150bn bond offer while only N116.99bn was allotted.

In February, the DMO re-opened the APR2023 bond, offering only N40bn for subscription at 12.75 per cent.

The MAR2025 and FEB2028 bonds were also reopened for subscription as the DMO offered N40bn on the MAR2025 bond and N20bn on the FEB2028 bond at 13.53 per cent and 13.98 per cent, respectively.

The DMO recorded a total subscription of N234.25bn on the February bond auction but only allotted N150bn.

In March, the APR2023, MAR2025 and FEB2028 bonds were reopened, offering N40bn, N40bn and N20bn, respectively, for subscription.

The bond auction was oversubscribed by 405.86 per cent, as the DMO only allotted N29.35bn from the total subscription of N148.47bn received.

This is due to the fact that the MAR2025 and FEB2028 bonds were fully subscribed and exhausted.

In April, the DMO reopened the APR2023, offering the same amount of N40bn at 12.75 per cent.

The DMO also issued fresh bonds in April, offering a 10-year N40bn and a 30-year N20bn bond.

Investors oversubscribed to the bonds by N49.3bn while the DMO allotted only N97.4bn from the total subscription of N149.3bn received.

The APR2023, APR2029 and APR2049 bonds were reopened in May at 12.75 per cent, 14.55 per cent and 14.80 per cent, respectively.

A total subscription of N271.11bn was received on the bonds while the DMO allotted N111.31bn.

In June, the APR2023, APR2029 and APR2049 bonds were reopened, maintaining same interest rates of 12.75 per cent, 14.55 per cent and 14.80 per cent, respectively.

Of the total N160.13bn subscription received, the DMO allotted N96.84bn.

The APR2023, APR2029 and APR2049 bonds were reopened in July, offering N40bn N50bn and N55bn, respectively at the same interest rate.

The DMO received a total of N301.02bn subscriptions while it allotted N86.82bn.

In August, the DMO reopened the APR2023, APR2029 and APR2049 bonds at the same interest rates, offering N40bn, N50bn and N55bn while only N15.03bn was allotted from a total subscription of N95.09bn.

However, the DMO said there was a non-competitive allotment of N44.5bn.

On September 17, the DMO published the September bond offer circular, reopening the APR2023, APR2029 and APR2049 bonds at the same interest rates.

As of the date of this report, no amount had been allocated as the DMO scheduled the allotment date for September 27.

No Eurobonds or sovereign sukuk issuances have been made this year.

The DMO issued the Federal Government’s only green bond for the first half of the year in June.

The N15bn worth of green bond has a seven-year tenor and a coupon band of 14.40 per cent to 14.50 per cent.

The offer for subscription of the N15bn green bond was by way of book build.

The Federal Government gave a breakdown of the use of the proceeds of the N15bn green bond as N1.22bn to the Federal Ministry of Environment; N600m to the Federal Ministry of Agriculture and Rural Development; N8.26bn to the Federal Ministry of Power, Works and Housing; N500m to the Federal Ministry of Transportation; N1.59bn to the Federal Capital Territory Authority and N2.82bn to the Federal Ministry of Water Resources.

So far, the Federal Government has recorded N3.64bn revenue from savings bonds in the year.

In the first quarter of the year, the DMO recorded N1.02bn investment from savings bond and N1.72bn investment in the second quarter of the year.

In the third quarter of the year, a total of N898.02m was recorded.

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