FGN Nov Bonds Oversubscribed By N102.35bn

The FGN bond auction by the Debt Management Office which took place on Wednesday was oversubscribed by N102.35bn.

The DMO offered N150bn from three instruments (five-year, 10-year and 30-year bonds) for N50bn each, to investors at the auction.

The total subscription received through competitive bids for the instruments at the auction was N252.35bn, indicating a subscription level of 168.23 per cent.

The trend of investors’ appetite for the longer tenored instruments continued with subscription of N115.09bn or 230.18 per cent for the 30-year bond.

Successful bids were allotted at the rate of 12.0000 per cent for the five-year, 12.9300 per cent for the 10-year and 13.3900 per cent for the 30-year bonds.

The allotment rates indicated a significant decline from the rates at which the bonds were issued at the October 2019 FGN bond auction.

The total amount allotted for competitive bids was N157.93bn across the three tenors.

In addition, the sum of N95bn was allotted through non-competitive bids for all the tenors at the same rates as the competitive bids.

Overall, the sum of N252.93bn was allotted to investors at the auction through competitive and non-competitive bids.