By Tony Obiechina, ABUJA
A total subscription of N80.41 billion representing a 400 percent rate was received from investors for the N20 billion offered by the Debt Management Office (DMO) for the 30-year Bond for April, 2019.
The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities.
According to a statement from the DMO, investors keenly contested for the N20 billion 30-year FGN Bond Auction introduced for the first time into the market on Wednesday in Abuja.
“With the success of the 30-year Bond offering, the DMO has reinforced its pioneering role in the Domestic Capital Market by introducing another longer-dated instrument which for the Government, represents appropriate funding for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates, to access longer-term funding for their projects”, the statement said.
The DMO offered a total of N100 billion in tenors of 5, 10 and 30 years at the Auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150%.
It also allotted a total of N97.40 billion to successful bidders at 14.50% for the 5-year, 14.55% for the 10-year and 14.80% for the 30-year FGN Bond.
