The federal government bonds offered on Wednesday were again oversubscribed by more than N100bn as investors continue to show confidence in the Nigerian economy.
On behalf of the federal government, the Debt Management Office (DMO) offered N90 billion Bonds in three tenors – 5, 7 and 10 years in line with the country’s borrowing plan.
The bonds were for the month of August, 2018.
“The total subscriptions received from bidders at the Auction were above N100 billion,” the DMO stated in a mailed statement.
It said allotments were made to successful bidders at 14.39% for the 5-year, 14.60% for the 7-year and 14.69% for the 10-year Bond, which are consistent with the rates in the secondary market for the Bonds offered at the Auction.
“A total of N100.09 billion was allotted to competitive and non-competitive bidders at the Auction and the proceeds will provide additional financing for the implementation of the 2018 Appropriation Act,” the debt office added.
Thee federal government issues monthly bonds to raise cash for the over N9 trillion 2018 expansionary budget.
With aa projection of an overall N1.950 trillion budget deficit, government plans to borrow N1.643 trillion to fund it.
N793 billion would be borrowed domestically, while N849 billion would be sourced externally at considerably lower interest rates as contained in the over-delayed budget singed just last June by President Buhari.
Patience Oniha, Director General of the Debt Management Office confirmed on Tuesday that so far, the government has borrowed N410 billion domestically out of the N793bn.
Onyinye Nwachukwu, Abuja
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
