Nigeria’s bonds over-subscribed, hit N360bn

Nigeria’s N150 billion bonds for Augusts 2021 has been over-subscribed to the tune of N360 billion.

The bonds were on August 18, 2021 offered by the Debt Management Office (DMO) for sale at the local debt market in three maturities of 10 years, 20 years, and 30 years at N50 billion each, all re-opening.

The result of the sale of the FGN bonds released by the debt office indicated that the papers were oversubscribed by investors by 140 per cent.

During the session, the 10-year bond recorded 83 total bids with rates ranging from 10.5 per cent – 13.0 per cent and the total subscriptions at N77.7 billion.

However, the DMO only sold to 54 investors and allotted to them N64.3 billion worth of the 10-year notes at a coupon rate of 11.6 per cent.

As for the 20-year paper, the agency sold N91.03 billion to 126 successful bidders from a pool of 138 subscribers with a range of bids from 11.00 per cent to 13.65 per cent and offers worth N105.0 billion. But the DMO cleared the paper at 12.75 per cent.

For the 30-year bond, the debt office said it received bids valued at N177.4 billion from 186 investors at a range of bids from 11.99 per cent to 14.00 per cent.

However, it allotted N104.8 billion worth of the note to 125 bidders at 12.8 per cent.


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