15th August, 2023
By Kadiri Abdulrahman
The Debt Management Office (DMO) says it received a total subscription of N312.56 billion in its August, Federal Government of Nigeria (FGN) bond auction.
This is contained in a statement released on DMO’s official website on Tuesday.
The DMO held the FGN bond auction on Monday, amidst monetary policy tightening and uncertainties.
Four instruments were offered to investors at the auction.
The instruments were 14.55 percent April 2029 FGN bond; 14.70 percent June 2033 FGN bond; 15.45 percent June 2038 FGN bond; and 15.70 percent June 2053 FGN bond.
They were valued at N90 billion each, making a total offer of N360 billion.
“In spite of current market conditions, the auction received a total subscription of ₦312.56 billion.
“Investors’ appetite for the 15.70 June 2053 (30-year bond) remained strong, with a bid-to-cover ratio of 2.71 times.
“The amount allotted to successful bidders for the four instruments was N227.76 billion.
“Allotments were made at 13.85 percent for the 14.55 percent April 2029 instrument and 15.00 percent for the 14.70 percent June 2033 instrument.
Also, “15.20 percent was for the 15.45 percent June 2038 instrument and 15.85 percent for the 15.70 percent June 2053 instrument,” the DMO said.
The FGN bond, like the FGN savings bond and the sovereign sukuk, are FGN securities which constitute the local component of government borrowing.
NAN