First FGN Bond Auction for the Year Oversubscribed


Friday, January 26, 2018 /9:43AM /DMO 

The Debt Management Office (DMO) conducted its FGN Bond Auction for January 2018 on Wednesday with two bonds offered — the 14.50% FGN JUL 2021 and the 16.2884% FGN MAR 2027.

Both bonds were oversubscribed, with total subscriptions of N150 billion, a subscription rate of 136%. The subscription level was higher for the 10-year benchmark bond, which indicates investors’ preference for longer dated instruments.

The DMO allotted a total of N110 billion, which was the amount offered in its circular released ahead of the Auction. The 14.50% FGN JUL 2021 was allotted at a rate of 13.3800%, while the 16.2884% FGN MAR 2027 was allotted at 13.4910%.

It would be recalled that the DMO had released its Issuance Calendar for Q1, 2018 last week with the details of its Auctions for the quarter. The DMO had stated then that its Issuance Programme is structured to ensure that the funds required to finance the budget deficit would be fully provided in line with its mandate.

 Proshare Nigeria Pvt. Ltd.

Related News

1.      Slight Rally on Bonds on Prospective Eurobond Issuance by the DMO
2.     Summary of FGN Bond Auction Results for January 2018
3.     Bond Auction clears 14bps higher, with total sale of N110bn by the DMO
4.     Weak Trading Sentiments on Bonds ahead of Auction
5.     Offshore Clients take profit on the 20-yr, following MPC suspension by the CBN
6.     Slight Uptick in Bond Yields amid MPC Uncertainties
7.     CBN accepts N195bn OMO Subscriptions from Market players
8.     New Year, Old Challenge for the DMO
9.     PMA Rates decline further with Significant Demand on the 364-day
10.  2017 Budget: N1.2 Trillion Released for Capital Projects
11.   Invest in FGN Monthly Bond Auction – January 2018
12.  CBN to Offer N230bn Treasury bills in its Second PMA of the Year
13.  Bond Yields rise by 13bps with slight profit taking on the 20-yr
14.  Delay in release of Q1 FGN Bond calendar fuels jitters
15.  CBN Resumes OMO to Mop-up inflows from Maturing OMO bills

Related News