N150bn FG bond oversubscribed

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The Debt Management Office (DMO) on has disclosed that the first N150 billion FGN bond auction for 2019 offered in three instruments was oversubscribed.

According to the office, total subscriptions from investors for the bonds was over N197 billion, indicating

a subscription level of 131 percent.

Successful bids were allotted at the rate of 15.20 percent for the five-year, 15.25 per cent for the seven-year and 15.35 per cent for the 10-year bonds.

The rates for the allotments were consistent with the yields in the secondary market.

Investor preference was mainly for the 10-year bond which had a subscription level of 299 percent.

In accordance with its policy of keeping the government’s borrowing costs at prudent levels, the DMO

allotted a total of N116.98 billion to successful bidders.