October 2019 FGN bond auction oversubscribed by 171%

Nduka Chiejina (Assistant Editor)

The October 2019 Federal Government of Nigeria (FGN) bond was oversubscribed by 171%.

A statement by the Debt Management Office (DMO) Wednesday night said the nation’s debt managers offered three (3) Instruments (5-year, 10-year and 30-year bonds) with a total face value of N150.00 billion.

All these offers the DMO said “were well received by investors. Total subscriptions received from competitive bids for the instruments was N255.99 billion, indicating a subscription level of 171%.”

Read Also: FGN bond auction oversubscribed

The DMO said “investor appetite remained strong for the longer-dated bonds with subscriptions of ₦119.78 billion for the 10-year bond, while subscriptions of ₦72.54 were received for the 30-year bond, giving subscription levels of 240% and 145% respectively, compared with the offered amounts of ₦50.00 billion each, for the two instruments.”

Allotments, the statement added, were made to successful bidders at 14.0500% for the 5-year, 14.2333% for the 10-year and 14.6000% for the 30-year bonds. “The rates are consistent with secondary market rates for the three (3) instruments” the statement said.

The Total amount allotted to competitive bidders for the three (3) instruments was N139.81 billion, while the sum of N3.00 billion was allotted to non-competitive bidders.

Overall, the total amount allotted at the Auction was N142.81 billion. This the DMO said shows that investor confidence in Federal Government of Nigeria’s Securities remained high.