The Debt Management Office (DMO) has announced that it raised the total sum of N123.84 billion in its Federal Government of Nigeria (FGN) bond auction for the month of July.
This disclosure is contained in a statement issued by the DMO on Monday and can be seen on its website, where it pointed out that the 3 instruments auctioned were valued at N75 billion each, totalling N225 billion.
According to the statement, the DMO noted that although the short-term and medium-term instruments recorded far below the offered amounts, the investors showed more preference for the long-term instrument which was oversubscribed.
Breakdown of the bond auction result
- “The DMO, on July 18, offered three instruments – 13.53 per cent FGN March 2025, 12.50 per cent FGN April 2032 and 13 per cent FGN January 2042 for N75 billion each.
- ‘’The total value of N225 billion offer for subscription was made to the investing public at the July FGN bond auction.
- “The subscription for 13.53 per cent FGN March 2025, 12.50 per cent FGN April 2032 were below the offered amount, with a subscription of N11.75 billion and N25.62 billion respectively. The investors showed more appetite for the longer-dated 13 per cent FGN April 2042, with a total subscription of N104.92 billion, representing an oversubscription of about 140 per cent of the offered amount.
- ‘’The DMO noted that the total amount allotted to successful bidders for the 13.53 per cent FGN March 2025, 12.50 per cent FGN April 2032 and 13 per cent FGN April 2042 bonds were N5.3 billion, N17.82 billion and N100.72 billion respectively, amounting to a total of N123.84 billion.
- ‘’It added that the marginal rates for these allotted bonds were 11 per cent, 13 per cent and 13.74 per cent respectively.’’
What you should know
- The DMO had earlier in June 2022, on behalf of the Federal Government offered for subscription N225 billion worth of FGN bonds by auction.
- The units of sale was N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
- A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).