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FGN Bonds attract oversubscription

Emma Ujah

Investor confidence in Federal Government of Nigeria’s Securities remained high at the FGN Bond Auction conducted by the Debt Management Office (DMO) on Wednesday, October 23, 2019, as reflected by the very high subscription level at the Auction.

Eurobonds, bond
Eurobonds

The DMO o/ered three (3) Instruments (5-year, 10-year and 30-year bonds) with a total face value of N150.00 billion which were well received by investors.

ALSO READ: FG records N26.92bn shortfall in bond auction

Total subscriptions received from competitive bids for the instruments was N255.99 billion, indicating a subscription level of 171 per cent.

Investor appetite remained strong for the longer-dated bonds with subscriptions of ₦119.78 billion for the 10-year bond, while subscriptions of ₦72.54 were received for the 30-year bond, giving subscription levels of 240 per cent and 145 per cent respectively, compared with the offered amounts of ₦50.00 billion each, for the two instruments.

Allotments were made to successful bidders at 14.0500 per cent for the 5-year, 14.2333 per cent for the 10-year and 14.6000 per cent for the 30-year bonds. The rates are consistent with secondary market rates for the three (3) instruments.

The Total amount allotted to competitive bidders for the three (3) instruments was N139.81 billion, while the sum of N3.00 billion was allotted to non-competitive bidders. Overall, the total amount allotted.

Vanguard

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