October 2019 FGN bond auction oversubscribed by 171% – TheNigerialawyer

The October 2019 Federal Government of Nigeria (FGN) bond was
oversubscribed by 171%.

A statement by the Debt Management Office (DMO) Wednesday night
said the nation’s debt managers offered three (3) Instruments
(5-year, 10-year and 30-year bonds) with a total face value of
N150.00 billion.

All these offers the DMO said “were well received by investors.
Total subscriptions received from competitive bids for the
instruments was N255.99 billion, indicating a subscription level of
171%.”

The DMO said “investor 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% and 145%
respectively, compared with the offered amounts of ₦50.00 billion
each, for the two instruments.”

Allotments, the statement added, were made to successful bidders
at 14.0500% for the 5-year, 14.2333% for the 10-year and 14.6000%
for the 30-year bonds. “The rates are consistent with secondary
market rates for the three (3) instruments” the statement said.

The Total amount allotted to competitive bidders for the three
(3) instruments was N139.81 billion, while the sum of N3.00 billion
was allotted to non-competitive bidders.

Overall, the total amount allotted at the Auction was N142.81
billion. This the DMO said shows that investor confidence in
Federal Government of Nigeria’s Securities remained high.