- FG Raises N88.1 Billion from Local Bond Market
The Federal Government on Wednesday raised N88.08 billion from the local bond market, according to the Debt Management Office (DMO).
The DMO said bonds were auctioned in three tenors of 5, 7 and 10 years to give investors an opportunity to choose preferred tenors.
The results posted on the Debt Management Office website on Thursday showed N115 billion worth of shares were offered but only N88.08 billion was allotted, despite bids reaching N143.48 billion.
This, was because investors were mainly interested in the 10-year re-opening bond with a total subscription of N102.08 billion, compared to the N45 billion that was offered.
Still, N55.29 billion was allotted.
The bonds were allotted at 12.75 percent for the 5-year bond, 13.53 percent for the 7-year bond and 13.98 percent for the 10-year bond.
According to the DMO, out of the N35 billion offered for the 5-year bond, N16.50 billion subscriptions were received, in which N12.65 billion was allotted.
For the 7-year bond, subscriptions valued at N24.90 billion were received for the N35 billion on offer, however, only N20.14 billion was allotted.
Out of the three, only the 10-year bond had allotments more than it was originally offered.
The Federal Government issues sovereign bonds monthly to support the local bond market.
However, experts believe the auction will help curb the rising inflation rate, especially after two consecutive increase ahead of projected election spending.