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Uche Usim, Abuja
Soothing news came the way of Nigeria as the February FGN bond auction by Debt Management Office (DMO) on Wednesday was significantly oversubscribed.
The DMO offered N140.00billion across three Instruments to investors at the auction (five-Year tenure: N45.00 billion 10-year tenure: N45.00 and 30-Year tenor: N50.00 billion). According to the DMO boss, Patience Oniha, subscriptions received through competitive bids for the three instruments were N398.20 billion, indicating a total subscription level of 284.43%. While the non-competitive bid for the sum of N60 billion was also received, making the total subscriptions from Competitive and Non-competitive bid to the sum of N458.20 billion.
A breakdown of the competitive subscriptions shows that the sum of N78.43 billion or 174.30% was received for the five-year bond; the sum N95.70 billion or 212.67% for the 10-year bond and the sum of N224.07 billion or 223.15% for the 30-year bond.
“Successful bids were allotted at the rate of 8.7500% for the five-year, 10.7000% for the 10-year and 12.15% for the 30-year bond, which indicate a decline from the allotment rates of 9.8500%, 11.1250% and 12.5600% for the 5-Year, 10-Year and 30-year bonds, respectively, at the January 2020 FGN bond auction.
“The total amount allotted for competitive bids was N100.00 billion across the three tenors, while a total sum of N60.00 billion was allotted through non-competitive Bid for the five-year and 10-year tenures, at same rates with the competitive bids, which made the total
