DMO Receives 298 Competitive Bids for N145bn July Bond Auction

July 25, 2019
Bond market

By Dipo Olowookere

On Wednesday, July 24, 2019, the Debt Management Office (DMO) offered for sale to investors debt instruments worth N145 billion at the local bond market.

During the exercise, the debt office said it received a total of 298 competitive bids from investors for the three instruments it auctioned yesterday.

These three maturities were the 5-year, 10-year and 30-year tenors, with N40 billion worth of the short-dated instrument offered, N50 billion worth of the mid-tenor notes auctioned and N55 billion worth of the long-dated paper offered for sale.

According to details of the results of the sale released by the DMO, subscriptions valued at N301.02 billion were received, indicating a subscription level of 207.6 percent.

It said allotments were made on successful bids at 13.35 percent for the 5-year, 13.64 percent for the 10-year and 14.12 percent for the 30-year bonds.

The debt office stated that these coupon rates were consistent with secondary market yields and also represented a decline in the marginal rates compared with those at the June 2019 FGN Bond auction.

It further said the total amount allotted for competitive bids was N86.82 billion from the total subscription of N301.02 billion.

In addition, the sum of N58.20 billion was allotted across the three tenors for non-competitive bids at the same rates with the competitive bids.

“Overall, the sum of N145.02 billion was raised at the auction through both competitive and non-competitive bids.

“The amount raised is to be utilised to part-finance the 2019 budget of the federal government,” a statement issued by the debt office said.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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