Investors Oversubscribe N100bn FGN Bond Sale for March
By Modupe Gbadeyanka
The Debt Management Office (DMO) on Wednesday, March 27, 2019 conducted the FGN Bond Auction for March 2019.
During the exercise yesterday, the debt office offered N100 billion worth of the bonds to market players.
Business Post reports that just as in the auctions for January and February 2019, the March 2019 exercise was oversubscribed.
The DMO offered three instruments at the auction for 3, 7 and 10-year tenors and subscriptions for the three instruments was in excess of N148 billion for competitive bids.
Non-competitive bids valued at N92.6 billion were also received, taking the total subscriptions across the 3 tenors to over N240.6 billion.
The trend of investors’ preference for the longer tenured instrument continued, with the 10-year bond significantly oversubscribed with a bid-to-cover ratio above 5.
Allotments were made to successful bidders at the rates of 13.5 percent for the 5-year, 13.5 percent for the 7-year and 13.5 percent for the 10-year bonds, which are considerably lower than the allotment rates for the February 2019 auction.
The total amount allotted to both competitive and non-competitive bids for the three instruments was N121.95 billion.