Investors Oversubscribe for FGN Bonds

• Investors Oversubscribe for FGN Bonds

Investors in Nigerian assets oversubscribed for Federal Government Bonds on Wednesday as they staked more than N300 billion on N145 billion offering.

In a statement released by the Debt Management Office (DMO), the government auctioned N145 billion for subscriptions with 5-year, 10-year and 30-year tenors on Wednesday.

It read, “Allotments were made on successful bids at 13.35 per cent for the five-year, 13.64 per cent for the 10-year and 14.12 per cent for the 30-year bonds, which were consistent with secondary market yields and represented a decline in the marginal rates compared with those at the June 2019 FGN Bond Auction.

“The total amount allotted for competitive bids was N86.82bn from the total subscription of N301.02bn. In addition, the sum of N58.20bn was allotted across the three tenors for non-competitive bids at the same rates with the competitive bids.”

A total of 298 bids valued at N301.02 billion were received for the three instruments, indicating 207.6 percent subscription level.

Overall, the Federal Government raised the sum of N145.02 billion through the auction, the DMO stated.