For umpteenth time, the Federal Government’s bond for February was significantly oversubscribed by 284.43 per cent, Debt Management Office (DMO) confirmed yesterday in bond auction result.
The DMO offered N140 billion across three instruments to investors at the auction (5-Year tenor: N45.00 billion, 10-Year tenor: N45.00 and 30-Year tenor: N50.00 billion).
Subscriptions received through competitive bids for the three instruments was N398.20 billion, indicating a total subscription level of 284.43%, DMO said.
The sum of N60 billion was received for non-competitive bid, making the total subscriptions from competitive and non-competitive bid to add up to N458.20 billion.
Breakdown of the competitive subscriptions shows that the sum of N78.43 billion or 174.30% was received for the 5-year bond; the sum of N95.70 billion or 212.67% for the 10-year bond and the sum of N224.07 billion or 223.15% for the 30-year bond.
Successful bids were allotted at the rate of 8.75% for the 5-Year, 10.7% for the 10-Year and 12.15% for the 30-Year bond, which indicate a decline from the allotment rates of 9.85%, 11.125% and 12.56% for the 5-Year, 10-Year and 30-Year bonds, respectively, at the January 2020 FGN Bond Auction.
“The total amount allotted for competitive bids was N100 billion across the three tenors, while a total sum of N60 billion was allotted through non-competitive bid for the 5-year and 10-year tenors, at same rates with the competitive bids, which made the total allotment from competitive and non-competitive bids to N160.00 billion,” DMO explained.