The Federal Government has announced that it has allotted N139.58 billion during its August bond auction. A statement by Debt Management Office (DMO) says the total subscription received from bidders for the three Bonds offered including five, 10 and 30-year amounted to N139.58 billion.
The statement also noted the amount was from total subscriptions received from both Competitive and Non-Competitive bids adding that the DMO offered N40 billion for the 5-year, N50 billion for the 10-year and N55 billion for the 30-year Bonds.
The auction which took place on Wednesday received 298 competitive bids from investors for the three instruments of five, 10 and 30-year tenure that were offered. It said allotments were made to successful bidders at the rate of 14.290% for the 5-year, 14.390% for the 10-year and 14.590% for the 30-year Bonds.
“At the August 2019 FGN Bond Auction held on Wednesday, August 21, 2019, the Debt Management Office (DMO) issued N59.53 billion FGN Bonds for the three (3) Tenors offered to various investors who subscribed at the Auction”. “The DMO offered N40 billion for the 5-year, N50 billion for the 10-year and N55 billion for the 30-year Bonds.
Total subscriptions received from both Competitive and Non-Competitive bids amounted to N139.58 billion” the statement said. DMO also noted that the demand for the 30-year bond remained strong as it has been the trend since the instrument was introduced to the market in April 2019. It also noted added that the total subscription for the Bond at the Auction was N64.71 billion. The DMO further noted that strong demand from investors for the FGN bonds offered at the Auction was in spite of the prevailing tight liquidity experienced in the financial markets.
