DMO Offers August FGN Bonds At 10% Interest Rate
The Debt Management Office (DMO) is offering two and three years’ savings bonds for the month of August at 10.3% and 11.3% interest rates respectively to raise capital for the 2019 Budget.
This was contained in a document published on the DMO website on Monday.
The interest payment of the bond is payable quarterly, and the bond costs N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 subject to a maximum subscription of N50,000,000.
The office had announced that the auction for the month of July was oversubscribed by 207.6 per cent. It said the total subscription received from bidders for the three Bonds offered including five, 10 and 30-year was in excess of 156bn against N145bn offered in the month of July.
The office also announced that it had raised an excess sum of N71 billion at the FGN Bond Auction in May 2019. Recent trends shows that investors have preference for long term bonds as the total bids received from investors for the bond was N271.11 bn.
At the May 2019 FGN bond auction, DMO offered three instruments for five, 10 and 30 years to the investing public, with a total amount offered of N100bn. Also the April auction when the 30 year bond was first offered to the market. Investors showed a stronger demand for the 30 year bond with subscription of over N100bn compared to the N30bn offered.