The Debt Administration Workplace, DMO, yesterday introduced plans to lift as much as N1.2 trillion via FGN bonds within the first quarter of the yr 2023.
The DMO disclosed this in its FGN Bonds issuance calendar for Q1 2023.
Amongst different issues, the calendar exhibits that the DMO will promote between N320 billion and N400 billion price of FGN bonds in every of the three months in Q1 of 2023.
The FGN bonds are available in 4 totally different maturities and rates of interest particularly 13.98% FGN FEB 2028, 12.50% FGN APR 2032, and 16.2499% FGN APR 2037.
The DMO additionally disclosed that the FGN Bond auctions will probably be held on January thirtieth, February thirteenth and March twentieth, 2023.
The N1.2 trillion to be raised by way of FGN Bonds in Q1’23 represents 13.6 per cent of the N8.8 trillion 2023 finances deficit.
In accordance with the Minister of Finance, Price range & Nationwide Planning, Mrs. Zainab Ahmed, 80 per cent or N7.04 trillion of the finances deficit is to be raised from home sources, whereas N1.76 trillion will probably be raised from international sources whereas N206.18 billion will come from proceeds of privatisation.
Final yr, the DMO raised N3.06 trillion via FGN Bonds as a part of efforts to finance the 2022 finances deficit of N7.35 trillion.
The N3.06 trillion raised represented a 13 per cent improve in comparison with the N2.71 trillion raised in 2021.
Evaluation of the month-to-month public sale outcomes confirmed that DMO provided N2.48 trillion price of FGN Bonds whereas it bought N3.06 trillion, which is over 23 per cent oversubscription.