Again, FGN 2019 FGN Bond auction oversubscribed by 207%

The third 2019 Bond auction  by the Federal Government of Nigeria (FGN) in July was said to have recorded oversubscription by over 207.6 per cent.

The Debt Management Office (DMO) said in a statement on Wednesday that it offered three Instruments of five-Year, 10-Year and 30-year tenors valued at about N145 Billion.

The DMO said the instruments were offered for subscription by the investing public at its July 2019 FGN bond auction on Wednesday.

The debt management agency said 298 competitive bids were received from investors for the three instruments, with a total value of N301.02 billion, indicating a subscription level of 207.6 per cent.

The statement said allotments were made on successful bids at 13.35 per cent for the five-year, 13.64 percent for the 10-year and 14.12 per cent for the 30-year bonds.

The DMO said they were consistent with Secondary Market Yields, representing a decline in the marginal rates, compared with those at the previous 2019 FGN Bond Auction in June.

“The total amount allotted for Competitive Bids was N86.82 Billion from the total subscription of N301.02 billion.

“In addition, the sum of N58.20 billion was allotted across the three tenors for non-competitive bids at the same rates with the competitive Bids,” the DMO said.

Overall, the DMO said about N145.02 billion was raised at the auction through both competitive and non-competitive bids.

The DMO said amount raised would be utilised to part-finance the 2019 Budget of the Federal Government.