FG Bond Oversubscribed by 207%

FG Bond Oversubscribed by 207%

The Debt Management Office says the N 145 bn offered for three instruments in the July bond auction received a total value of N 301.02 bn , indicating a subscription level of 207.6 per cent.

In a statement the DMO issued in Abuja , it said the auction which took place on Wednesday received 298 competitive bids from investors for the three instruments of five , 10 and 30 – year tenure that were offered .

It , however, said that overall , N 145 . 02bn was raised at the auction through both competitive and non – competitive bids .

“ The total amount allotted for competitive bids was N 86. 82bn from the total subscription of N 301.02 bn .

“ In addition , the sum of N 58.20 bn was allotted across the three tenors for non -competitive bids at the same rates with the competitive bids . ”

The DMO added that allotments were made on successful bids at 13.35 per cent for the five – year, 13.64 per cent for the 10 – year and 14.12 per cent for the 30 – year bonds.

These , it said , were consistent with secondary market yields and also represented a decline in the marginal rates compared with those at the June bond auction .

“ The amount raised is to be utilised to part -finance the 2019 budget of the Federal Government , ” the DMO said .

The News Agency of Nigeria reports that Nigeria issues sovereign bonds monthly to support the local bond market , create a benchmark for corporate issuance and fund its budget deficit .


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