Nigeria’s January bond issuance oversubscribed by N139 bn —DMO

THE Debt Management Office (DMO) says the country’s January bond issuance valued at N214.05 billion ended with an oversubscription of N139 billion.

The debt office said the auction, which ended on January 19, has a settlement date of January 22, 2022.

The agency offered two tranches of bonds worth N75 billion each.

According to DMO, it offered a reopened 10-year bond at 12.50 per cent and a newly-issued 20-year bond at 13.00 per cent.

Both issuances have a maturity date of January 22, 2026, and January 21, 2042, respectively, it said.

DMO also said the auction has a term-to-maturity period of four years and 20 years.

The agency noted that the auction concluded with 160 successful bids out of the 254 bids it received.

It further said the amount allotted culminated in N81.72 billion and N88.92 billion for the first and second bond offers.

Also, DMO noted that the bids received for the 10-year bond ranged from 10.80 per cent to 13.25 per cent, while the 20-year bond ranged from 11 per cent to 14.50 per cent.

“Successful bids for the 12.50 per cent FGN JAN 2026 and 13.00 per cent FGN JAN 2042 were allotted at the Marginal Rates of 11.50 per cent and 13.00 per cent, respectively,” the statement reads.

However, the original coupon rates of 12.5000 per cent for the 12.5000 per cent FGN JAN 2026 will be maintained, while the coupon rate for the 13.00 per cent FGN JAN 2042 (new issue), is set at 13.00 per cent.