Investors stake N626.328bn on FG’s N155bn bond

  • DMO: We allotted N411.822bn to financiers in January auction



The Federal Government’s bond auction for January 2020 was subscribed by over 300 per cent, Debt Management Office (DMO) has confirmed.

At the bond auction session held yesterday, DMO offered N155.00 billion of three instruments (five-year, 10-year and 30-year tenors) to investors at the auction.

However, subscriptions received through competitive bids for the three instruments at the auction was N624.498 billion, while the sum of N1.83 billion was received through non-competitive bid making the total subscription received at N626.328 billion.

Of note, DMO said, was investors’ appetite for the  30-year bond, which continued to be strong, with subscription of N341.77 billion or 621 per cent compared to the amount offered of N55.00 billion, while subscription for the 10-year bond was N201.98 billion or 404 per cent when compared with the amount offered of N50.00 billion.

Successful bids were allotted at the rate of 9.8500 per cent for the 5-Year, 11.1250 per cent for the 10-Year and 12.5600 per cent for the 30-Year bonds which indicate a significant decline from the rates of 11.0000 per cent, 12.0000 per cent and 13.0000 per cent for the five-year, 10-year and 30-year bonds, respectively, at the December 2019 FGN bond auction.

The total amount allotted for competitive bids was N409.992 across the three tenors.

In addition, DMO said the sum of N1.83 billion was allotted through non-competitive bid for the 30-year bond at same rate with the competitive bids.

Overall, the sum of N411.822 billion was allotted to investors at the auction through both competitive and non-competitive bids.

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