The Debt Management Office (DMO), has announced that the total subscriptions received from competitive bids for the Federal Government Bond Auction was N255.99 billion, indicating a subscription level of 171 per cent.
In the auction conducted by the SMO on Wednesday, three instruments offered for five-year, 10-year and 30-year bonds with a total value of N150 billion which have been well received by investors.
It noted in a statement in Abuja on Wednesday that investors’ confidence in Federal Government Securities remained high,adding that this was reflected by the high subscription at the auction.adding that at.
According to the DMO, 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.
(With a report from NAN)