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FGN’s N150Bn Bond Auction In November Oversubscribed – DMO

The Debt Management Office (DMO) on Thursday stated that the FGN Bond Auction, which took place on Wednesday, November 20, 2019 was over-subscribed significantly by investors.

For the auction, the DMO offered N150 billion from three (3) Instruments (5-Year, 10-Year and 30-Year Bonds) for N50 billion each to investors

The Office indicated that total subscriptions received through Competitive Bids for the instruments at the auction totalled N252.35 billion, indicating a subscription level of 168.23%.

According to the DMO, the trend of investors’ appetite for the longer-tenored instruments continued with subscription of N115.09 billion or 230.18% for the 30-year Bond.

It indicated in a statement on the outcome of the bids that successful bids were allotted at the rate of 12.0000% for the 5-Year, 12.9300% for the 10-Year and 13.3900% for the 30-Year Bonds.

Despite the investors’ strong appetite for the debt instruments, the Office reported that the November 20 Bond Auction represented a significant decline from the rates at which the Bonds were issued at the October 2019 FGN Bond Auction.

It disclosed that following the consideration of the bids, a total amount of N157.93 billion was allotted for Competitive Bids across the three tenors.

This is even as the Office stated that the sum of N95.00 billion was allotted through Non-Competitive Bids for all the tenors at the same rates as the Competitive Bids.

Overall, the sum of N252.93 billion was allotted to investors at the Auction through both Competitive and Non-Competitive Bids.

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