FGN BONDS ISSUANCE CALENDAR FOR THE THIRD QUARTER, 2021

The Debt Management Office (DMO) released the Federal Government of Nigeria (FGN) bond issuance calendar for third quarter of 2021, with total amount on offer of ca ₦540billion, ca +20% higher than ₦450billion offered in Q2 2021. The calendar indicated the reopening of the February 2028, March 2036 and March 2050 maturities.

Outlook

With inflows of ca ₦1.52 trillion expected in July from bonds coupon payment, OMO and NTB maturities as well as bond maturities, we expect significant over-subscription at the Bonds Primary Market Auction (PMA), to be held on 21 July 2021.

Also, with only ca ₦1.92 trillion of approved ₦2.14 trillion domestic borrowing achieved as at June 2021, and with the recent approval of supplementary budget of ca ₦982.73 billion, the DMO is expected to over-sell at the upcoming PMA, as the federal government attempts to bridge the budget deficit gap.

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