FG to auction N50bn bonds in March 25- DMO

The Debt Management Office has said that Federal Government will auction N50bn worth of bonds by subscription on March 25.
A circular by the DMO on Wednesday showed the breakdown of the figure to include a N15bn five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent; a N15bn 15-year new issue bond that would mature in March 2035 and another N20bn 30-year new issue that would mature in April 2050.

According to the DMO, the settlement date for the bonds to be auctioned is March 27.
The Federal Government through the DMO had auctioned bonds worth N155bn and N140bn in January and February respectively.
Recall that the February 2020 FGN bond auctioned by the DMO was oversubscribed by N258.2bn.

The DMO offered N140bn across three instruments to investors at the auction of five-year tenor of N45bn, 10-year tenor of N45bn, and 30-year tenor of N50bn.

Subscriptions received through competitive bids for the three instruments totalled N398.2bn, indicating a total subscription level of 284.43 per cent.

Non-competitive bid for N60bn was also received, making the total subscriptions from competitive and non-competitive bid N458.2bn.
A breakdown of the competitive subscriptions showed that N78.43bn or 174.30 per cent was received for the five-year bond; N95.7bn or 212.67 per cent for the 10-year bond and N224.07bn or 223.15 per cent for the 30-year bond.

Successful bids were allotted at the rate of 8.7500 per cent for the five-year, 10.7000 per cent for the 10-year and 12.15 per cent for the 30-year bond, which indicated a decline from the allotment rates of 9.8500 per cent, 11.1250 per cent and 12.5600 per cent for the five-year, 10-year and 30-year bonds, respectively, at the January 2020 FGN bond auction.

The total amount allotted for competitive bids was N100.00bn across the three tenors, while N60.00bn was allotted through non-competitive bid for the five-year and 10-year tenors, at same rates with the competitive bids, which made the total allotment from competitive and non-competitive bids N160.00bn.

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