Home Business Capital Debut 30-Year FGN Bond Oversubscribed At April Auction
Capital

Debut 30-Year FGN Bond Oversubscribed At April Auction

Share
Share

May 2, 2019/DMO  

Investors keenly contested for the N20 billion 30-year FGN Bond offered by the Debt Management Office (DMO) at the April 2019 FGN Bond Auction. For the first time the DMO introduced the 30-year FGN Bond into the market at the April 2019 FGN Bond Auction which held on Wednesday April 24, 2019. A total subscription of N80.41 billion was received from investors for the N20 billion offered by the DMO for the 30-year Bond, representing a 400% subscription rate. 

The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities. 

With the success of the 30-year Bond offering, the DMO has reinforced its pioneering role in the Domestic Capital Market by introducing another longer-dated instrument which for the Government, represents appropriate funding  for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates, to access longer-term funding for their projects. 

The DMO offered a total of N100 billion in tenors of 5, 10 and 30 years at the Auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150%. The DMO allotted a total of N97.40 billion to successful bidders at 14.50% for the 5-year, 14.55% for the 10-year and 14.80% for the 30-year FGN Bond.

Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

Stanbic IBTC Asset Management Launches Anti-Scam Campaign To Protect Mutual Fund Holders

Stanbic IBTC Asset Management has implemented strong measures to safeguard its customers...

MTN Nigeria Raises N75.18Bn Via Commercial Paper Issuance

MTN Nigeria Communications Plc has announced the successful completion of its Series...

Stanbic IBTC Clinches Multiple Awards At The 2024 FMDQ Gold Awards

Stanbic IBTC Clinches Multiple Awards At The 2024 FMDQ Gold Awards  ...

Access Holdings Reports 82.8% Growth In Q3 PAT To ₦457.7 billion

*As Total Assets Hit To ₦41.1 Trillion   Access Holdings Plc, one...