Investors who, apparently have been desperately looking for outlets to push in their cash following huge liquidity in the market scrambled for Federal government 3 tenored bonds auctioned on Wednesday.
The Debt Management Office (DMO) confirmed that the first bond for the year was oversubscribed by more than 300%.
The DMO offered N155bn three Instruments of 5-Year, 10-Year and 30-Year tenors to investors at the Auction.
Subscriptions received through Competitive Bids for the three instruments at the Auction was N624.498 Billion, while the sum of N1.83 billion was received through Non-Competitive bid making the total subscription received the sum of N626.328 billion.
Investor appetite for the 30-Year Bond continued to be strong, with subscription of N341.77bn or 621% compared to the amount offered of N55bn.
Subscription for the 10-year Bond was N201.98bn and was oversubscribed by 404% when compared with the N50bn on offer.
Consequently, bids were allotted at the rate of 9.8500% for the 5-Year; 11.1250% for the 10-Year; and 12.5600% for the 30-Year Bonds. This indicates a significant decline from the rates of 11.0000%, 12.0000% and 13.0000% for the 5-Year, 10-Year and 30-Year Bonds, respectively, at the December 2019 FGN Bond Auction.
The total amount allotted for Competitive Bids was N409.992 across the three (3) tenors. In addition, the sum of N1.83 Billion was allotted through Non-Competitive Bid for the 30-year Bond at same rate with the Competitive Bids.
Overall, the sum of N411.822 Billion was allotted to investors at the Auction through both Competitive and Non-Competitive Bids.
Onyinye Nwachukwu, Abuja
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