Fed Govt’s September Bonds Oversubscribed By N10.9bn

Federal Government’s September bonds were oversubscribed by N10.9bn.

The Debt Management Office disclosed this after it conducted the monthly auction of FGN bonds on Wednesday.

Three instruments¬ (five-year, 10-year and 30-year bonds) with a total face value of N150bn were offered to investors at the auction.

The total subscription received from competitive bids for the instruments was N160.9bn.

In addition, there were also non-competitive bids of N46.6bn, taking the total subscription received (competitive and non-competitive) to the tune of N207.5bn.

As in previous auctions, investors’ sentiments remained strong for the longer-dated bonds.

Subscriptions received from competitive bids for the 10-year and 30-year bonds were N82.91bn and N63.66bn, compared with the amount offered of N50bn and N55bn, for the two instruments, respectively.

Allotments were made to successful bidders at 14.3900 per cent for the five-year, 14.4300 per cent for the 10-year and 14.6400 per cent for the 30-year bonds.

The amount allotted to competitive bidders for the three instruments was N100bn, while the sum of N46bn was allotted to non-competitive bidders.

Overall, the total amount allotted at the auction was N146.6bn.