DMO’s July 2023 FGN Offering Oversubscribed by 182.73 Percent

The Debt Management Office (DMO) on Wednesday reported that its July 2023 Federal Government of Nigeria (FGN) bond offering received overwhelming investor interest, surpassing all expectations with an oversubscription rate of 182.73 percent.

The DMO, responsible for managing the nation’s debt, reopened the market for two 10-year, one 15-year, and one 30-year FGN bonds, collectively valued at N657.84 billion.

The July 2023 offering also recorded a month-on-month increase of 39.03 percent, equivalent to N184.68 billion when compared to the N473.16 billion sold in June 2023.

This was revealed in the FMDQ Exchange financial markets monthly report for July, which was released on Wednesday.

The oversubscribed FGN bond offering in July, combined with the impressive performance in the treasury bills market, where the DMO sold bills valued at N406.10 billion, underscores Nigeria’s fiscal strength.

During the month under review, the Central Bank of Nigeria did not conduct any public OMO bills auctions within the period under review.

The average FGN bond coupon rates in July 2023 dipped across 10-year, 15-year and 30-year segments to 13.05 percent, 14.10 percent and 14.30 percent respectively.

It was also reported that there were no corporate bonds listed on FMDQ Exchange in July 2023 compared to N17.50bn worth of corporate bonds listed in June 2023.