DMO Conducts N60bn Bond Auction

April 22, 2020
bond auction

By Modupe Gbadeyanka

The Debt Management Office (DMO) is today auctioning some bonds worth N60 billion at the local debt market.

The debt office, which is selling the papers on behalf of the Federal Government of Nigeria (FGN), will sell the debt instruments across three tenors.

Details of the exercise indicated that all the three maturities are re-openings of the previous instruments sold to investors at the previous auctions.

From the circular obtained by Business Post concerning the auction, the DMO would be selling N20 billion each of the 5-year, 15-year and 30-year bonds today.

It said the FGN APR 2023 paper is with a coupon rate of 12.75 percent, the FGN MAR 2035 note at 12.50 percent and the FGN APR 2050 instrument at 12.98 percent.

There are strong expectations that the exercise will be oversubscribed going by the previous auctions, which had investors showing huge appetite for the investment tool.

On Tuesday, the National Bureau of Statistics (NBS) said the inflation rate of the country for the month of March 2020 increased to 12.26 percent.

Recall that earlier this month, the monthly FGN Savings Bond sale was suspended due to the lockdown of Lagos, Abuja and Ogun State to contain the spread of coronavirus disease.

“The Debt Management Office (DMO) wishes to inform the general public that the FGN Savings Bond Offer for the month of April 2020, which was scheduled for April 6 – 10, 2020 has been suspended.

“The DMO wishes to assure the general public that the FGN Savings Bond Offers will resume when the conditions change.

“It should be noted that the suspension of the April 2020 Offer will not affect Coupon Payments due to investors for already issued FGN Securities as arrangements have been made to ensure that all Coupon Payments for and redemptions of FGN Securities are made as and when due to investors’ designated accounts,” a statement from the agency had said.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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