The Debt Management Office (DMO) says it received a total subscription of ₦312.56 billion in its August, Federal Government of Nigeria (FGN) bond auction.
The DMO made this known in a statement released through its official website on Tuesday, August 15, 2023. The News Agency of Nigeria (NAN) reports that the DMO held the FGN bond auction on Monday, amidst monetary policy tightening and uncertainties.
Four instruments were offered to investors at the auction. The instruments were 14.55% April 2029 FGN bond; 14.70% June 2033 FGN bond; 15.45% June 2038 FGN bond and 15.70% June 2053 FGN bond.
They were valued at ₦90 billion each, making a total offer of ₦360bn.
“In spite of current market conditions, the auction received a total subscription of ₦312.56 billion.
“Investors’ appetite for the 15.70 June 2053 (30-year bond) remained strong, with a bid-to-cover ratio of 2.71 times.
“The amount allotted to successful bidders for the four instruments was ₦227.76 billion.
“Allotments were made at 13.85% for the 14.55% April 2029 instrument and 15.00% for the 14.70% June 2033 instrument.
Also “15.20% was for the 15.45% June 2038 instrument, and 15.85% for the 15.70% June 2053 instrument, ” the DMO said.
The News Agency of Nigeria (NAN) reports that the FGN bond, like the FGN savings bond and the sovereign sukuk, are FGN securities which constitute the local component of government borrowing.