DMO Allots 30-Year Bond for 15.75% at March FGN Bond Sales
By Aduragbemi Omiyale
On Monday, the debt management office (DMO) sold some FGN bonds worth N563.4 billion, more than the N360.0 billion offered to the market for the month of March 2023.
The debt office auctioned the debt instrument in four dated maturities during the session and received subscriptions worth N808.5 billion, reflecting a strong appetite for the government debt instrument despite the unfavourable macroeconomic environment and global banking woes.
According to details of the exercise, the DMO sold the bonds in two different 10-year papers, one 20-year note and one 30-year bond, each offered at N90 billion.
Analysis of the bids showed that the first 10-year paper with three years and 11 months to maturity received subscriptions valued at N72.8 billion and N70.9 billion allotted at 14.00 per cent.
As for the second decade-old note, with nine years and one month to maturity, received bids worth N30.9 billion and N21.8 billion sold at 14.75 per cent, and the 20-year note first issued five years ago was allotted at 15.20 per cent after N355.6 billion subscriptions were received from subscribers, with N144.2 billion sold.
Business Post reports that the 30-year paper, which matures in 27 years’ time, had investors staking N349.4 billion on it, with the debt office allotting N326.5 billion at 15.75 per cent.