Modupe Gbadeyanka
By Modupe Gbadeyanka
At least the sum of N160 billion has been raised by the Federal Government in local currency bonds at its second debt auction in 2017.
According to figures released by the Debt Management Office (DMO), which performed the auctioning on behalf of the government, the bonds were raised at yields lower than inflation rate.
From the figures analysed by Business Post, investors oversubscribed the bonds.
While the DMO planned to raise N110 billion from the exercise, offers worth N337.03 billion were received from investors.
In the analysis, N70 billion was realised from the notes maturing in 2036 at 16.77 percent. The initial amount offered for this paper by the DMO was N40 billion, but it got N139.90 billion subscription in a total of 151 bids.
Also, for the paper maturing in 2026, the DMO finally allotted N30 billion at 16.61 percent, while N60 billion was allotted for the notes maturing in 2021 at 16.55 percent.
