The interest shown by investors in Federal Government Bonds (FGN Bonds) has not waned as they staked about N458.2 billion for the N140 billion bond. This was disclosed by the Debt Management Office (DMO).
The Debt Management Office, in a statement released today, said the February 2020 Federal Government of Nigeria (FGN) Bond Auction, which took place on Wednesday, was significantly oversubscribed by investors. The result of the FGN Bond auction signifies a consistent trend of oversubscription of the bond auction by investors.
The DMO offered N140 billion across the three instruments to investors at the auction (5-year tenor: N45 billion; 10-year tenor: N45 billion; and 30-year tenor: N50 billion).
The subscriptions received through competitive bids for the three instruments were N398.20 billion, indicating a total subscription level of 284.43%. Non-Competitive bid for the sum of N60 billion was also received, making the total subscriptions from Competitive and Non-Competitive bid hit N458.20 billion.
Auction Result for the 12.75% FGN APR 2023 (Re-opening 5-year Bond), 14.55% FGN APR 2029 (Re-opening 10-Year Bond) and 14.80% FGN APR 2049 (Re-opening 30-Year Bond).
A further breakdown of the Competitive subscriptions show that the sum of N78.43 billion or 174.30% was received for the 5-year Bond; the sum of N95.70 billion or 212% for the 10-year bond and the sum of N224.07 billion or 223.15% for the 30-year bond.
There was a reduction in the allotment rates for January 2020 from 9.85%, 11.1250% and 12.5600% for the 5-year, 10-year and 30-year bonds respectively to 8.7500% for the 5-year, 10.7000% for the 10-year and 12.15% for the 30-year bond in February 2020.
A total of N100 billion was allotted for Competitive bids across the three tenors, while a total sum of N60 billion was allotted through the Non-Competitive bid for the 5-year and 10-year tenors, at the same rates with the Competitive bids, which brought the total allotment from Competitive and Non-Competitive bids to N160 billion.