The FGN Bond Auction for March this year conducted by the Debt Management Office (DMO) yesterday was oversubscribed. A total of N100 billion bonds were offered. Itwould be recalled that auctions for January and February were also oversubscribed.
A statement from the DMO said it “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.”
The statement added that “non-competitive bids valued at N92.6 billion were also received, taking the total subscriptions across the three 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”.
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Allotments were made to successful bidders at the rates of 13.5 per cent for the five-year, 13.5 per cent for the seven-year and 13.5 per cent for the 10-year bonds, which are considerably lower than the allotment rates for the February auction.
“The total amount allotted to both competitive and non-competitive bids for the three instruments was N121.95 billion” the statement said.
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