Investors Oversubscribe February 2020 FGN Bond Sale

By Dipo Olowookere

The February 2020 FGN bond auction held on Wednesday, February 19, 2020, was significantly oversubscribed by investors, a statement from the Debt Management Office (DMO) revealed.

During the exercise, the debt office auctioned N140 billion worth of the papers across three maturities; 5-year tenor of N45 billion, 10-year tenor of N45 billion and 30-year tenor of N50 billion.

According to the statement, subscriptions received through competitive bids for the three instruments was N398.20 billion, indicating a total subscription level of 284.43 percent.

The DMO also said it received non-competitive bids worth N60 billion from subscribers, making the total subscriptions from both competitive and non-competitive bids to the sum of N458.20 billion.

A breakdown of the competitive subscriptions showed that the sum of N78.43 billion or 174.30 percent was received for the 5-year bond; the sum N95.70 billion or 212.67 percent for the 10-year bond and the sum of N224.07 billion or 223.15 percent for the 30-year bond.

It further said successful bids were allotted at the rate of 8.75 percent for the 5-year, 10.70 percent for the 10-year and 12.15 percent for the 30-year bond, which indicate a decline from the allotment rates of 9.85 percent, 11.13 percent and 12.56 percent for the 5-year, 10-year and 30-year bonds, respectively, at the January 2020 FGN bond auction.

The total amount allotted for competitive bids was N100 billion across the three tenors, while a total sum of N60 billion was allotted through non-competitive bid for the 5-year and 10-year tenors, at same rates with the competitive bids, which made the total allotment from competitive and non-competitive bids to N160 billion.

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

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