Fed Govt’s February Bond Oversubscribed By N84bn

The Federal Government’s bond for the month of February worth N150bn which was offered on Wednesday was oversubscribed by over N84bn.

The Debt Management Office disclosed on Thursday that the trend of oversubscription at the FGN bond auctions for the year continued, after the three instruments for five, seven and 10-year tenors, with a total value of N150bn were offered.

Total bids received from investors for the bonds exceeded N234bn, with a total subscription level of 156 per cent.

The focus of investors was principally on the 10-year bond which had a subscription level of 392 per cent, it added.

Successful bids were allotted at rates notably lower than those at the January 2019 auction, with 14.52 per cent for the five-year, 14.799 per cent for the seven-year and 14.939 per cent for the 10-year bond.

The DMO allotted the full N150bn offered to successful bidders across the three tenors.

Earlier, the DMO, had said the Federal Government would auction N150bn bond on February 20.

A circular by the DMO had showed the breakdown of the figure to include a N50bn five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent; another N50bn seven-year reopening bond to mature in March 2025 and be auctioned at 13.53 per cent; while another N50bn 10-year bond would mature in February 2028 and be auctioned at 13.98 per cent.

According to the DMO, the bonds to be auctioned had a settlement date of February 22.

The DMO had earlier auctioned a N150bn bond on January 30 which was also over-subscribed.