Business
Nigerian govt’s August Savings Bonds oversubscribed as investment hits N100bn
The Federal Government bond auction for August 2018 aimed at funding capital expenditure in the 2018 Budget was oversubscribed on Wednesday, the Debt Management Office (DMO) has said.
At the auction, three tenors of 5, 7 and 10 years were offered to give the investors an opportunity to choose their preferred tenors.
The DMO said the value of investment by the subscribers hit over N100 billion on the FGN Bonds which it issued on Wednesday.
According to the nation’s debt office, the subscription was N10 billion more than the N90 billion offered at the auction.
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“The FGN Bond Auction for August 2018, which was conducted by the DMO on Wednesday at which N90bn bonds were offered in three tenors – five years, seven years and 10 years – was oversubscribed.
“The total subscriptions received from bidders at the auction were above N100bn.
“Allotments were made to successful bidders at 14.39 per cent for the five-year, 14.6 per cent for the seven-year and 14.69 per cent 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 N100.09bn 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 DMO said.
On Tuesday, the DMO had announced that it had already raised N410 billion as capital raising for the 2018 budget through the domestic debt market.
The latest development has now brought the total fund raised so far for the budget through the domestic debt market to over N500 billion.
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