\By Emma Ujah, Abuja Bureau Chief
Abuja—As part of the capital raising for the 2018 Budget, the Debt Management Office, DMO, has raised N66.9 billion at the FGN Bond Auction.
At the auction, the DMO offered FGN Bonds in three tenors of 5, 7 and 10 years to give its diverse investor base an opportunity to choose their preferred tenors.
The results indicated that investors showed a strong preference for the 10-year Bond with a total subscription of N50.51 billion compared to the N40 billion that was offered, an indication of a very strong investor confidence in the Nigerian economy.
The FGN Bonds at the Auction were allotted at 13.69 per cent for the 5-year, 14.00 per cent for the 7-year and 14.2999 per cent for the 10-year Bond.
Investors have been demonstrating strong appetite for the Federal government Bonds, as they also oversubscribed last month’s offer by as much as N 6.7 N billion.
Last month’s auction during which bonds were equally offers in three tenors – 5 years, 7 years and 10 years – was oversubscribed as investors bid for N66.7 billion compared to the N60 billion offered by the DMO.
That was in spite of the FX Sale of US$210 million by the Central bank of Nigeria h mopped up over N65 billion from the market a few days, earlier, as well as, CBN also mopped up of over N200 billion from the system through the sale of OMO Bills the same week.