Connect with us
Advertise With Us

BUSINESS

‘FGN March Bond Auction Oversubscribed’

Published

on

The Federal Government of Nigeria (FGN) Bond Auction for March 2019 conducted by the Debt Management Office (DMO) on Wednesday, March 27, was oversubscribed.

The N100 billion bonds were offered in the March issuance. The federal government also recorded oversubscription in it Auctions for January and February 2019.

The DMO offered three instruments at the Auction for 3, 7 and 10-year tenors and  subscriptions for the three instruments was in excess of N148 billion for competitive bids, according to a statement from the debt office yesterday.

Non-competitive bids valued at N92.6 billion were also received, taking the total  subscriptions across the 3 tenors to over N240.6 billion.

The trend of investors’ preference for the longer tenured instrument continued with the 10-year bond significantly oversubscribed with a bid-to-cover ratio above five.

Allotments were made to successful bidders at the rates of 13.5 per  cent for the 5-year, 13.5 per cent for the 7-year and 13.5 per cent for the 10-year bonds, which are considerably lower than the allotment rates for the February 2019 Auction.

The total amount allotted to both competitive and non-competitive bids for the three instruments was N121.95 billion.

Advertisement
Comments

MOST POPULAR

%d bloggers like this: