February 2020 FGN bond auction oversubscribed ― DMO

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5 years ago

The February 2020 FGN Bond Auction by Debt Management Office (DMO) which took place on Wednesday was significantly oversubscribed.

According to a statement from DMO, N140.00 billion across three instruments were offered to investors at the auction (5-Year tenor: N45.00 billion 10-year tenor: N45.00 and 30-Year tenor: N50.00 billion).

Subscriptions received through competitive bids for the three instruments was N398.20 billion, indicating a total subscription level of 284.43%. While the non-competitive bid for the sum of N60 billion was also received, making the total subscriptions from competitive and non-competitive bid to the sum of N458.20 billion.

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A breakdown of the competitive subscriptions shows that the sum of N78.43 billion or 174.30% was received for the 5-year bond; the sum N95.70 billion or 212.67% for the 10-year Bond and the sum of N224.07 billion or 223.15% for the 30-year bond.

Successful bids were allotted at the rate of 8.7500% for the 5-year, 10.7000% for the 10-year and 12.15% for the 30-year bond, which indicate a decline from the allotment rates of 9.8500%, 11.1250% and 12.5600% for the 5-Year, 10-Year and 30-year bonds, respectively, at the January 2020 FGN bond auction.

The total amount allotted for competitive bids was N100.00 billion across the three (3) tenors, while a total sum of N60.00 billion was allotted through a non-competitive bid for the 5-year and 10-year tenors, at same rates with the competitive bids, which made the total allotment from competitive and non-competitive bids to N160.00 billion.