By Emma Ujah, Abuja Bureau Chief
Investors in the capital market swooped on the Federal Government Bond at yesterday’s auction, staking N100 billion.
The auction for August 2018, which was conducted by Debt Management Office, DMO, saw the agency offering N90 billion bonds in three tenors of five, seven and 10 years.
It was oversubscribed by N10 billion, given the total subscriptions received from bidders at the auction.
Allotments were made to successful bidders at 14.39 per cent for the five-year; 14.60 per cent for the seven-year and 14.69 per cent for the 10-year bond, which were consistent with the rates in the secondary market for the bonds offered at the auction.
According to the DMO, a total of N100.09 billion was allotted to competitive and non-competitive bidders at the auction and the proceeds.
With this successful auction, DMO has raised over N510 billion from the domestic market to finance the 2018 budget.
Director-General of the DMO, Ms. Patience Oniha, had explained at a press briefing on Tuesday that the implementation of Public Debt Management Strategy would ensure that Nigeria’s debt remained sustainable.