The Debt Management Office (DMO) on Wednesday stated that Federal Government’s Bond Auctions in October were over-subscribed, indicating growing investor confidence in the nation’s securities market.
The Office, in a statement indicated that it offered three instruments of five-year, 10-year and 30-year bonds with a total value of N150 billion which were well received by investors.
Specifically, the debt management agency disclosed that the total subscriptions received from competitive bids for the instruments was N255.99 billion, representing 171 percent subscription rate.
It clarified further: “Investors’ 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 billion each for the two instruments, allotments were made to successful bidders at 14.05 per cent for the 5-year, 14.23 per cent for the 10-year and 14.60 per cent for the 30-year bonds. The rates are consistent with secondary market rates for the three instruments,” the DMO stated.
The DMO stated further that the total amount allotted to competitive bidders for the three instruments was N139.81 billion compared to the sum of N3 billion that was allotted to non-competitive bidders.
It added the total amount allotted at the auction for the month was N142.81 billion.
