Follow Us on Google
Uche Usim, Abuja
The N100 billion Federal Government of Nigeria (FGN) June bond auctioned on Wednesday by the Debt Management Office (DMO) was oversubscribed by N60 billion, showing a high level of demand by investors.
The DMO in a statement said it offered three instruments totalling N100 billion to the investing public at the Auction with five, 10 and 30-year tenors.
According to the office, subscriptions for the three instruments from competitive bids were slightly above N160 billion, indicating an oversubscription of 60%.
It said: “Investors’ appetite for longer-tenured instruments remained strong, with the 30-year bond oversubscribed by 100%. The 10-year Bond was also oversubscribed by over 50%, while the five-year tenor was 31% oversubscribed.
“Allotments were made to successful Bidders at 14.3% for the five-year, 14.5% for the 10-year and 14.68% for the 30-year Bonds. Total allotments from the competitive offer was N96.84 billion”, it explained.
The DMO added that in addition, an allotment of N13.50 billion was made on a non-competitive basis for the 10-year bond, also at the rate of 14.5%.
