Uche Usim, Abuja
The Federal Government of Nigeria bond auction for September conducted by the Debt Management Office (DMO), on Wednesday, September 26, 2018 was over-subscribed by over 158 billion.
This was the same scenario for the August 2018 auction.
According to the DMO, “Total subscriptions received from bidders for three bonds offered: five-year, seven-year and 10-year was in excess of N158.00 billion, against the N90 billion offered. “Demand at the Auction was concentrated on the 10-year bond which was 313% subscribed”, the agency said.
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The DMO further revealed that allotments were made to successful bidders at 15.00% for the five-year, 15.15% for the seven-year and 15.2459% for the 10-year bond, which were consistent with the rates in the secondary market for the bonds offered at the auction.
It added that a total of N96.74 billion was allotted to bidders at the auction and the proceeds will provide additional financing for the implementation of the 2018 Appropriation Act.