DMO: FGN bond auction for April 2020 oversubscribed by 459 percent

By UCHE USIM, Abuja

Soothing news came the way of the Debt Management Office (DMO) as it revealed that the FGN bond auction for April 2020 held on Wednesday, April 22 was oversubscribed.

The DMO, in a statement released Thursday said it offered N60 billion bonds across three tenors to investors at the auction – N20 billion each for the five-Year, 15-year and 30-year tenors. The total subscriptions received through competitive bids for the three instruments was N275.67 billion, indicating an overall subscription level of 459%.

According to DMO, demand was very strong for all the instruments offered at the auction. A breakdown of the subscriptions shows that the sum of N49.70 billion or 248.50% was received for the 5-year bond; N107.47 billion or 537.35% for the 15-year bond and N118.50 billion or 592.25% for the 30-year bond.

Successful bids were allotted at the rate of 9.00% for the five-year, 12.00% for the 15-year and 12.50% for the 30-year bond, all of which are lower than the rates at the March 2020 FGN bond auction.

The total amount allotted for competitive bids was N156.06 billion across the three tenors, while the sum of N20.00 billion was allotted through non-competitive bids for the five-year and 15-year tenors, which brought the total amount allotted from competitive and non-competitive bids to N176.06 billion. (Daily Sun)