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FG’s February Bond Auction Oversubscribed



The February 2020 FGN Bond Auction which took place yesterday, February 19, 2020, was oversubscribed, the Debt Management Office (DMO) said in a statement.

The DMO offered N140 billion across three instruments to investors at the Auction (5-Year tenor: N45.00 billion 10-Year tenor: N45.00 and 30-Year tenor: N50.00 billion).

Subscriptions received through competitive bids for the three instruments was N398.20 billion, indicating a total subscription level of 284.43 per cent.

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 per cent was received for the 5-year Bond; the sum N95.70 billion or 212.67 per cent for the 10-year Bond and the sum of N224.07 billion or 223.15 per cent for the 30-year Bond, according to the debt office.

Successful bids were allotted at the rate of 8.7500 per cent for the 5-Year, 10.7000 per cent for the 10-Year and 12.15 per cent for the 30-Year Bond, which indicate a decline from the allotment rates of 9.8500 per cent, 11.1250 per cent and 12.5600 per cent 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 billion across the three tenors, while a total sum of N60 billion was allotted through non-competitive bid for the 5-year and 10-year tenors, at same rates with the Competitive Bids, which made the total allotment from Competitive and Non-Competitive bids to N160 billion.