FGN June 2019 Bond Oversubscribed by 60%

By Tony Obiechina, Abuja

The FGN Bond Auction for June 2019 conducted by the Debt Management Office (DMO) on Wednesday, was oversubscribed by 60 percent.
According to a statement from the DMO in Abuja, this is coming on the heels of high level of demands shown by Investors at FGN Bond Auctions in recent months.
At the auction, the DMO had offered on three instruments totalling N100 billion to the investing public at the Auction with 5, 10 and 30-year tenors. 
Subscriptions for the three instruments from competitive bids were slightly above N160.00 billion, indicating an oversubscription of 60 percent.
Investors’ appetite for longer tenored instruments remained strong, with the 30-year bond oversubscribed by 100%. The 10-year Bond was also oversubscribed by over 50%, while the 5-year tenor was 31% oversubscribed.
Allotments were made to successful Bidders at 14.3% for the 5-year, 14.5% for the 10-year and 14.68% for the 30-year Bonds. 
Total allotments from the competitive offer was N96.84 billion. In addition, an allotment of N13.50 billion was made on non-competitive basis for the 10-year bond, also at the rate of 14.5 percent.

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