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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