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FG’s March bonds oversubscribed by N183.48bn – DMO




The Debt Management Office (DMO) has announced that the federal government’s bonds for March worth N150bn which were auctioned on Wednesday were oversubscribed by N183.48bn.

The total subscription, according to the DMO, received from investors for the bonds was N333.48bn comprising of N65.25bn for 16.2884 percent FGN March 2027 bonds; N110.19bn for 12.5 percent FGN March 2035 bonds; and N158.04bn for 9.8 percent FGN July 2045 bonds.

The Office added that out of 82, 125 and 215 total bids for the tenures, 48, 88 and 176 were successful.

The DMO stated that a total of N262.1bn was allotted, comprising of N44.01bn, N86.29bn and N131.80bn respectively.

It said: “Successful bids for the 16.2884 percent FGN MAR 2027, 12.5 percent FGN MAR 2035 & 9.8 percent FGN JUL 2045 were allotted at the marginal rates of 10.5 percent, 11.5 percent and 12 percent respectively.

“However, the original coupon rates of 16.2884 percent for the 16.2884 percent FGN March 2027, 12.5 percent for the 12.5 percent FGN March 2035, and 9.8 percent for the 9.8 percent FGN July 2045 will be maintained.”

Recently, reported that the Office declared its readiness to auction FGN bonds to investors at the local debt market on Wednesday, January 20.

This was contained in a statement released by the DMO, saying that the notes are from the previously issued debt securities and they are the 10-year, 15-year, and 25-year papers.

The statement obtained by this medium read that the settlement date for the exercise is Friday, January 22, 2021.

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The statement read further that the agency would be offering for sale N50 billion of the 10-year (16.29 percent FGN MAR 2027) bond, N50 billion of the 15-year (12.50 percent FGN MAR 2035) bond, and N50 billion of the 25-year (9.80 percent FGN JUL 2045) bond.

The DMO also noted that for re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.



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