Investors scramble as FGN bonds oversubscribed by N1. 28trn

The Debt Management Office (DMO) bond offers have been oversubscribed by a whopping N1.282 trillion by investors falling over themselves to get a bite of the pie.

Nigeria’s debt agency conducted a primary market auction on Monday where it offered N350 billion worth of local bonds to investors.

The amount DMO sought to rise from 5-year and 7-year bonds were N200 billion and N150 billion following the announcement of cancellation of N100 billion worth of 10-Year bonds.

The auction results revealed that investors staked more than N1.632 trillion on the amount offered amidst increasing appetite for the naira assets.

This means the two bonds were oversubscribed by N1.282 trillion or 163.2 per cent.
The 5-Year FGN bonds received a total subscription of N465.146 billion from investors. Of the total bids, the DMO allotted N305.362 billion to investors, meeting 97 out of 133 bids it received.

For the 7-Year bonds, DMO offered to raise N150 billion but subscription came heavier as investors continue to capitalise on real returns. While investors’ subscription came at N1, 167.092 billion, the DMO only sold N605.027 billion – success bids were 175 out of 318 pushed forward.

Successful bids for the 19.30 per cent FGN APR 2029 (Re-opening, 5-Year Bond) and 18.50 per cent FGN FEB 2031 (Re-opening, 7-Year Bond) were allotted at the Marginal Rates of 19.20 per cent and 19.33 per cent, respectively.

However, the original coupon rates of 19.30 per cent for the 19.30 per cent FGN APR 2029 and 18.50 per cent for the 18.50 per cent FGN FEB 2031 will be maintained, DMO said.