FG October Bonds Oversubscribed By N205.87bn

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The Federal Government of Nigeria Bonds were oversubscribed by N205.87bn.

The Debt Management Office disclosed this after it conducted the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

The DMO had earlier said it would auction N30bn worth of bonds by subscription, giving the breakdown of the figure to include a N15bn 15-year reopening bond that would mature in March 2035 to be offered at 12.5 per cent; and another N15bn 25-year reopening bond that would mature in July 2045 to be auctioned at 9.8 per cent.

It earlier disclosed that the Federal Government’s September bonds were oversubscribed by N10.9bn.

Three instruments (five-year, 10-year and 30-year bonds) auctioned in September with a total face value of N150bn were offered to investors at the auction.

The total subscription in September received from competitive bids for the instruments was N160.9bn.

In addition, there were also non-competitive bids of N46.6bn, taking the total subscription received (competitive and non-competitive) to the tune of N207.5bn.

– Punch

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