By Modupe Gbadeyanka
The Debt Management Office (DMO) on behalf of the Nigerian government auctioned some bonds to domestic investors at the primary market on Wednesday.
During the exercise, the debt office sold the 30-year note at 8.94 per cent, lower than the previous 9.90 per cent the same paper went for about a month ago.
This was influenced by the huge demand for the bond tenor, which received a subscription level of 409.8 per cent.
From the results of the auction, Business Post gathered that investors staked N163.9 billion on the N40 billion worth of the debt put up for sale by the DMO via 104 competitive bids.
However, the Abuja-based debt office allotted only N4.6 billion of the 30-year bond to investors.
Apart from the 30-year note, which was the longest maturity auctioned, the debt office offered three other tenors for sale; 10-year, 15-year and 25-year notes.
For the 10-year paper, it offered N25.0 billion and N83.3 billion subscriptions were received in 78 bids, while N67.0 billion was sold at 6.00 per cent for competitive bids and N2.3 billion allotted for non-competitive bids at the same coupon rate. At the previous exercise, this same note cleared at 6.70 per cent.
It was also observed that N40.0 billion worth of the 15-year bond was auctioned yesterday, but this received subscriptions valued at N71.4 billion, with N25.4 billion allotted to subscribers at 8.52 per cent, lower than 9.35 per cent it was sold about a month ago.
For the 25-year debt instrument, the debt office offered for sale N40.0 billion and got bids worth N41.1 billion, with only N6.8 billion sold at 8.90 per cent, lower than 9.75 per cent the same paper was given to traders at the last exercise.
Adedapo Adesanya