Investors Maintain Strong Appetite for 30-year Bond With 100% Oversubscription
The high level of demand shown by investors at FGN Bond auctions in recent months continued at the FGN Bond auction for June 2019 which was conducted by the Debt Management Office (DMO) on Wednesday, June 26, 2019.
The DMO offered three instruments totalling N100 billion to the investing public at the auction with 5, 10 and 30-year tenors.
Subscriptions for the three instruments from competitive bids were slightly above N160.00 billion, indicating an oversubscription of 60 percent.
It was observed that investors’ appetite for longer tenored instruments remained strong, with the 30-year bond oversubscribed by 100 percent.
The 10-year bond was also oversubscribed by over 50 percent, while the 5-year tenor was 31 percent oversubscribed.
Allotments were made to successful bidders at 14.3 percent for the 5-year, 14.5 percent for the 10-year and 14.68 percent for the 30-year bonds. Total allotments from the competitive offer were N96.84 billion.
In addition, an allotment of N13.50 billion was made on non-competitive basis for the 10-year bond, also at the rate of 14.5 percent.