Investors oversubscribe FG bond offer despite election concerns

Huge concerns around the 2019 general elections were not strong enough to dampen investors’ interests in the Nigeria’s dent market as seen in the bond auction results released by the Debt Management Office (DMO) Wednesday night.

The DMO on Wednesday, offered three instruments, for 5, 7 and 10-year tenors, with a total value of N150 billion were offered.

But total bids received from investors for the bonds exceeded N234 billion, with a total subscription level of 156 percent.

The DMO figures indicated that the focus of investors was principally on the 10-year bond which had a subscription level of 392 percent.

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“The trend of oversubscription at FGN Bond Auctions for the year continued at the February 2019 Auction conducted by the Debt Management Office (DMO), the debt office confirmed in a mailed statement to BusinessDay.

Successful bids were allotted at lower lower than those at the last month’s Auction, with 14.52% for the 5-year; 14.7999% for the 7-year and 14.939% for the 10-year bond.

The DMO allotted the full N150 billion offered to successful bidders across the 3 tenors.

Onyinye Nwachukwu, Abuja

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.