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DMO records N52bn oversubscription on FGN bonds auction



DMO: Domestic debt servicing increased by over N247bn in 2017

The Federal Government’s medium-term bonds of 14.55% FGN APR 2029 and 14.70% FGN JUN 2033 have been oversubscribed, the December 2023 Bond Auction Result from the Debt Management Office (DMO) has shown.

This is the first time since February 2023 that the bonds will be oversubscribed.

The bonds were auctioned on December 11, 2023 and the settlement date listed as December 13, 2023.

For the 14.55% FGN APR 2029 bond, the maturity date is listed as April 26, 2029 while June 21, 2033 is the maturity date of the FGN JUN 2033 bond.

According to the December bond auction results, for the 14.55% FGN APR 2029 bond at a marginal rate of 15.50%, DMO offered N90 billion but received a subscription of N169.979 billion with bids ranging between 14.00%-17.50% of which N28.614 billion was allotted.

For the 14.70% FGN JUN 2033 bond, N90 billion was offered at a marginal rate of 16.00%, however, 44 bids were received, representing a subscription of N57.43 billion.

READ ALSO:DMO boss, Oniha, counsels incoming govt on dept management, borrowings

Nine bids were successful and N9.148 billion was allotted. The bids ranged between 15.00% and 17.50%.

For the 15.45% FGN JUN 2038 bond, N90 billion was offered at a marginal rate of 16.50%. The bids ranged between 15.00%-18.00% and an N113.82 billion subscription was received in 83 bids. However, only 14 bids were successful with N23.343 billion allotted.

For the 15.70% FGN JUN 2053 bond, N90 billion was offered at a marginal rate of 17.15%. The bids ranged between 16.00 and 20.00%, with a total subscription of N545.183 billion in 318 bids. Only 125 bids were successful with N211.523 billion allotted.

Similarly, the DMO recorded an oversubscription of N526 billion in its December bond auction.

The DMO offered N360 billion for the bonds auctioned on December 11, 2023 and it recorded a subscription of N886.412 billion, representing an oversubscription of N526.412 billion.

However, only N273.628 billion was allotted as only 176 of the 501 bids were successful.

Summary of FGN Bond Auction Results for December, 2023.

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