FGN bond auction for March oversubscribed in excess of N148bn
The Debt Management Office,DMO,on Wednesday confirmed that the FGN Bond Auction for March 2019 conducted by the office at which N100 billion Bonds were offered, was oversubscribed in excess of N148bn just as in the Auctions for January and February 2019.
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% for the 5-year, 13.5% for the 7-year and 13.5% 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.
HARRISON EDEH, ABUJA