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FG January Bond Auction Receives N626.328bn Subscription



The January 2020 FGN Bond Auction by the Debt Management Office (DMO) of the federal government which took place on Wednesday, January 22, 2020 was oversubscribed by more than 300%.

The DMO offered N155.00 billion of three (3) instruments (5-Year, 10-Year and 30-Year Tenors) to investors at the auction.

According to data from the debt office yesterday, subscriptions received through competitive bids for the three instruments at the auction was N624.498 billion, while the sum of N1.83 billion was received through Non-Competitive bid, making the total subscription received the sum of N626.328 billion.

Investor appetite for the 30-Year Bond continued to be strong, with subscription of N341.77 Billion or 621 per cent compared to the amount offered of N55.00 billion, while subscription for the 10-year Bond was N201.98 Billion or 404 per cent when compared with the amount offered of N50.00 billion.

Successful bids were allotted at the rate of 9.8500 per cent for the 5-Year, 11.1250 per cent for the 10-Year and 12.5600 per cent for the 30-Year Bonds which indicate a significant decline from the rates of 11.0000 per cent, 12.0000 per cent and 13.0000 per cent for the 5-Year, 10-Year and 30-Year Bonds, respectively, at the December 2019 FGN Bond Auction.

The total amount allotted for Competitive bids was N409.992 across the three (3) tenors. In addition, the sum of N1.83 billion was allotted through Non-Competitive Bid for the 30-year Bond at same rate with the Competitive Bids.

Overall, the sum of N411.822 billion was allotted to investors at the Auction through both Competitive and Non-Competitive Bids.