Nigeria Sells 30-Year Bonds to Investors at 14.64%

September 26, 2019
FGN Eurobond

By Dipo Olowookere

The N150 billion worth of bonds offered to investors at the local debt market on Wednesday, September 25, 2019 during the monthly exercise was oversubscribed.

The bond offering was conducted yesterday by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) and three instruments were sold in 5-year, 10-year and 30-year bonds maturities.

A statement issued by the debt office said the total subscriptions received from competitive bids for the debt instruments was N160.90 billion.

In addition, there were also non-competitive bids of N46.60 billion, taking the total subscription received for both competitive and non-competitive to the sum of N207.50 billion.

As in previous auctions, investors sentiments remained strong for the longer-dated bonds, with subscriptions received from competitive bids for the 10-year and 30-year bonds at N82.91 and N63.66 billion respectively in contrast to the amount offered of N50.00 billion and N55.00 billion, for the two instruments, respectively.

The debt office noted that allotments were made to successful bidders at 14.39 percent for the 5-year, 14.43 percent for the 10-year and 14.64 percent for the 30-year bonds.

It further said the amount allotted to competitive bidders for the three tenors was N100.00 billion, while the sum of N46.60 billion was allotted to non-competitive bidders. Overall, the total amount allotted at the Auction was N146.60 billion.

Business Post reports that N55.12 billion worth of the 30-year notes was allotted, N71.16 billion worth of the 10-year papers was sold and N20.33 billion worth of the 5-year instruments was allotted.

Dipo Olowookere

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 [email protected]

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