Uche Usim, Abuja
The N100 billion Federal Government of Nigeria (FGN) June bond auctioned on Wednesday by the Debt Management Office (DMO) was oversubscribed by N60 billion, showing a high level of demand by investors.
The DMO in a statement said it offered three instruments totalling N100 billion to the investing public at the Auction with five, 10 and 30-year tenors.
According to the office, subscriptions for the three instruments from competitive bids were slightly above N160 billion, indicating an oversubscription of 60%.
It said: “Investors’ appetite for longer-tenured instruments remained strong, with the 30-year bond oversubscribed by 100%. The 10-year Bond was also oversubscribed by over 50%, while the five-year tenor was 31% oversubscribed.
“Allotments were made to successful Bidders at 14.3% for the five-year, 14.5% for the 10-year and 14.68% for the 30-year Bonds. Total allotments from the competitive offer was N96.84 billion”, it explained.
The DMO added that in addition, an allotment of N13.50 billion was made on a non-competitive basis for the 10-year bond, also at the rate of 14.5%.