Federal Government of Nigeria (FGN) bonds were oversubscribed by approximately N88.3 billion.
The Debt Management Office (DMO) on Wednesday, January 2021 disclosed this after it conducted the monthly FGN bonds auction.
The organisation, in its bonds auction results summary, noted that a total sum of N238.28 billion was bid for the FGN bond across all tenors.
Techeconomy.ng understands that the FGN bonds are debt securities (liabilities) of the federal government issued by the DMO for and on behalf of the government.
The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due.
See the key highlights below:
- A total of N91.84 billion was submitted for the 10-Year tenor worth N50 billion, implying that it was oversubscribed by N41.84 billion.
- The 15-Year tenor recorded a total subscription of N106.37 billion, implying an oversubscription of N56.37
- On the other hand, the 25-Year tenor was undersubscribed by N9.93 billion, after it recorded a total subscription of N40.07 billion.
Earlier, this medium reported that the DMO had declared its readiness to auction FGN bonds to investors at the local debt market on Wednesday, January 20.
The office explained that the notes are from the previously issued debt securities and they are the 10-year, 15-year, and 25-year papers.