FG issues N59.53 billion in August bond auction – DMO

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The Debt Management Office (DMO) on Wednesday, issued N59.53 billion Federal Government bonds for the three tenors it offered to various investors who subscribed at the auction. DMO-debt management office

The DMO said this in a statement it issued in Abuja after the auction. It said it offered N40 billion for the five year papers, N50 billion for the 10-year and N55 billion for the 30-year bonds.

According to it, total subscriptions received from both Competitive and Non-Competitive bids amounted to N139.58 billion.

“Demand for the 30-year bond remained strong as has been the trend since the instrument was introduced to the market in April 2019. “The total subscription for the 30-year at the auction was N64.71 billion.

DOM allotted N39. 52 b FGN bond(Opens in a new browser tab) “The strong demand from investors for the bonds offered at the auction was in spite of the prevailing tight liquidity experienced in the financial markets”, it added.

The DMO said that allotments were made to successful bidders at the rate of 14.29 per cent for the five year, 14.39 per cent for the 10-year and 14.59 per cent for the 30-year bonds.

According to the auction results obtained from the DMO website, N2.05 billion was allotted to four successful bidders for the five-year and N2.68 billion to five bidders for the 10-year papers.

Meanwhile, N10.30 billion was allotted to 11 bidders at for the 30-year bonds, bringing the total allotments to N15.03 billion. It said that an additional allotment of N44.5 billion was made on non-competetive basis for the three tenors.

NAN reports that Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit. (NAN)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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