CBN records N608.2bn long tenured bonds over subscription

The Central Bank of Nigeria (CBN) has recorded an impressive N608.2 billion long-tenured bonds oversubscription, a clear indication of investors’ rush for safe haven and confidence in the country’s economy.

This development according to experts is a welcome boost to Nigeria’s fiscal landscape, providing the necessary funds to support critical sectors and infrastructure development. The oversubscription also reflects the attractiveness of Nigeria’s bond market, offering investors a relatively stable and secure investment option.

The CBN’s financial data reveals a significant surge in investment, with various economic indicators showing positive trends. For instance, the Standing Lending Facility (Net) stood at N930.7 billion as of October 11, 2024, while the Standing Deposit Facility (Net) was N119.8 billion. These figures demonstrate the CBN’s efforts to maintain economic stability and promote growth.

The CBN offered N300 billion and had a total subscription of N908.23 billion, skewed only at the 361-day, while the 95-day and 179-day had no subscription. The CBN eventually settled at N905.23 billion at a stop rate of 24.30 percent market data showed.

Meanwhile, the Debt Management Office (DMO) has released the Federal Government of Nigeria (FGN) Bonds Issuance Calendar for Q4 2024.

According to the schedule, the following bond reopenings are planned: October 21, 2024: Re-opening of the 19.30 percent FGN April 2029 bond (with 4 years and 6 months remaining to maturity), originally issued with a 5-year tenor; and the 18.50 percent FGN February 2031 bond (6 years and 5 months remaining), initially issued with a 7-year tenor.

There is also, November 18, 2024: Re-opening of the 19.30 percent FGN April 2029 bond (4 years and 5 months remaining to maturity) and the 18.50 percent FGN February 2031 bond (6 years and 4 months remaining).

December 16, 2024: Re-opening of the 19.30 percent FGN April 2029 bond (4 years and 4 months remaining) and the 18.50 percent FGN February 2031 bond (6 years and 3 months remaining).

According to available offer documents, each reopening will offer between N80 billion and N100 billion, as part of the DMO’s strategy to meet financing needs and create investment opportunities. Market analysts expect high subscription levels, driven by the current high-interest-rate environment, which encourages investors to turn to risk-free assets.

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