By Ashemiriogwa Emmanuel
High net-worth investors and institutional investors staked a total of N334.3 billion in the Federal Government of Nigeria sovereign bonds worth N150 billion auctioned for September 2021, Business Post reports.
The exercise was conducted by the Debt Management Office (DMO) last Wednesday and from the analysis of the details released by the agency, it was oversubscribed by 122.9 per cent.
The paper was offered to the market participants in three maturities of 10 years (13.98% FGN FEB 2028), 20 years (12.40% FGN MAR 2036) and 30 years (12.98% FGN MAR 2050) at N50 billion each.
The results of the exercise indicated a total of 65 investors put N52.4 billion on the 10-year note but N42.4 billion was allotted to 48 investors at 11.6 per cent, though the range of bids was between 10.75 per cent and 14.0 per cent.
As for the 20-year bond, it recorded subscriptions worth N125.6 billion from 144 bids with bids range from 9.9 per cent to 14.0 per cent. However, the DMO allotted the sum of N115.8 billion to only 127 successful bids at marginal rates of 12.75 per cent.
The notice issued by the debt office showed that 121 investors staked a total of N156.3 billion on the 30-year note with bids ranged from 12.0 per cent to 14.5 per cent, but only 95 successful bids were attended to by the DMO with N118.8 billion allotted at 13.0 per cent.
Those who subscribed to the FGN bonds will receive the bullet upon maturity dates; that is on February 23, 2028, March 18, 2036, and March 27, 2050, for the 10-year, 20-year, and 30-year bond respectively.
Auctioned on a monthly basis, the FGN bond sale is conducted by the government through its debt management office to meet the specific needs and carry out special infrastructural projects while allowing individuals to invest securely.
