Debt: Nigeria’s January Bond Offer Oversubscribed by N471bn

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JANUARY 23 – The Federal Government has recorded an oversubscription of N471.49bn (or 164.5 per cent) on its January bond offer.

The Federal Government, had through the Debt Management Office, offered N155bn by reopening the APR-2023, APR-2029 and APR-2049 bonds, offering investors N50bn, N50bn and N55bn respectively across the tenors.

It said the N155bn bonds consisted of a reopening of N50bn five-year bond at a rate of 12.75 per cent, N50bn 10-year bond at the rate of 14.55 per cent and N55bn 30-year bond at the rate of 14.80 per cent.

The DMO said the total subscription received was N626.33bn while it allotted a total of N411.82bn to investors at the auction through both competitive and non-competitive bids.

It said the total subscription received through competitive bids for the three instruments at the auction was N624.50bn while the sum of N1.83bn was received through non-competitive bids.

At the end of the auction, which took place on Wednesday, the DMO allocated N29.3bn on the five-year bond at 9.85 per cent, compared with a previous stop rate of 11 per cent, and N106.39bn on the 10-year bond at 11.13 per cent, compared with the last interest rate of 12 per cent.

Total subscription recorded on the 10-year bond was N201.98bn (or 404 per cent) when compared with the N50bn offered.

Investor appetite for the 30-year bond continued to be strong, with a subscription of N341.77bn (or 621 per cent) compared to the N55bn offered.

The DMO allocated N274bn 30-year bonds at 12.56 per cent, compared with a previous stop rate of 13 per cent.

It said the total amount allotted for competitive bids was N409.99bn across the three tenors, while N1.83bn was allotted through non-competitive bid for the 30-year bond at same rate with the competitive bids.

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