By Dipo Olowookere
The Debt Management Office (DMO) on Wednesday, May 20, 2020, conducted the bond auction for this month at the local market.
During the exercise, the debt office offered investors the Federal Government of Nigeria (FGN) bonds valued at N60 billion spread across three maturities.
It auctioned the N20 billion worth of 5-year 12.75% FGN APR 2023, N20 billion worth of 15-year 12.50% FGN MAR 2035, and N20 billion worth of 30-year 12.98% FGN MAR 2050.
An analysis of the bids by Business Post showed that investors staked N81.89 billion on the short-term instrument in 98 bids, N154.10 billion on the medium-term tenor in 107 bids and N189.19 billion on the long-dated maturity in 136 bids.
However, for the allotment, the DMO sold N67.37 billion for the 5-year paper at a marginal rate of 9.20 percent. It equally allotted N68.73 billion for the 15-year note at a marginal rate of 11.70 percent and sold N160.10 billion for the 30-year paper at a marginal rate of 12.60 percent.
For the non-competitive allotment, the debt office sold N20 billion for the 5-year bond and N74.50 billion for the 15-year bond.
Business Post reports that the settlement date for these FGN bonds, which are all sold from the previously issued notes at previous exercises, is Friday, May 22, 2020.
Recall that the national Assembly recently authorised President Muhammadu Buhari to convert the $2.36 billion external borrowing to local loans.
This forced the DMO to review its bond sales calendar for the second quarter of this year. However, the addition did not reflect in May’s exercise because of the short notice.
But this reflect in next month’s bond sale and the agency will sell between N135 billion and N165 billion precisely on June 17, 2020 across three tenors.
The debt office further said all the notes are re-opening, meaning the term-to-maturity of the 5-year bond for next week is 2 years and 11 months, the 15-year paper is 14 years and 10 months and the 30-year note is 29 years and 10 months.
Adedapo Adesanya 
Modupe Gbadeyanka