Uche Usim, Abuja
The Debt Management Office (DMO) on Wednesday, said investors scrambled for the N20 billion, 30-year FGN bond it offered at the April 2019 auction.
According to the Director-General of DMO, Patience Oniha, it was the first time the DMO was introducing the 30-year FGN Bond into the market. She disclosed that a total subscription of N80.41 billion was received from investors for the N20 billion offered by the DMO for the 30-year Bond, representing a 400 per cent subscription rate.
“The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities.
“With the success of the 30-year bond offering, the DMO has reinforced its pioneering role in the domestic capital market by introducing another longer-dated instrument which for the government represents appropriate funding for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates, to access longer-term funding for their projects”, she explained.
Oniha noted that the DMO offered a total of N100 billion in tenors of five, 10 and 30 years at the auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150 per cent.
“The DMO allotted a total of N97.40 billion to successful bidders at 14.50 per cent for the five-year, 14.55 per cent for the 10-year and 14.80 per cent for the 30-year FGN bond”, she added.