Business
THE Debt Management Office (DMO), says investors’ confidence in Federal Government Securities remained high at the Federal Government Bond Auction conducted by the office on Wednesday.
A statement issued by DMO on Wednesday in Abuja said this was reflected by the high subscription at the auction.
According to DMO, it offered three instruments five-year, 10-year and 30-year bonds with a total value of N150 billion which have been well received by investors.
The DMO said that the total subscriptions received from competitive bids for the instruments was N255.99 billion, indicating a subscription level of 171 per cent.
“Investors’ appetite remained strong for the longer-dated bonds with subscriptions of ₦119.78 billion for the 10-year bond, while subscriptions of ₦72.54 were received for the 30-year bond, giving subscription levels of 240 per cent and 145 per cent respectively.
“Compared with the offered amounts of ₦50 billion each for the two instruments, allotments were made to successful bidders at 14.05 per cent for the 5-year, 14.23 per cent
for the 10-year and 14.60 per cent for the 30-year bonds.
“The rates are consistent with secondary market rates for the three instruments,” the DMO said.
It added that the total amount allotted to competitive bidders for the three instruments was N139.81 billion, while the sum of N3 billion was allotted to non-competitive bidders.
The DMO said the total amount allotted at the auction for the month was N142.81 billion.
NAN
– Oct 24, 2019 @ 07:39 GMT |
Tags: FGN Bond auction over subcribed in October says DMO
