Nigeria: DMO Allots N324 Million Bonds to 408 Subscribers

19 August 2019

The Debt Management Office (DMO) has allotted the sum of N324m, raised during its monthly August subscription of the savings bonds, to 408 investors.

This was contained in a document published on its website over the weekend.

The document showed that N243.3 million was allotted to 258 investors at 11.301 per cent for the August 2022 papers, while N81.03 million was allotted 150 investors at 10.3 percent for August 2021 maturity date.

As part of the capital raising for the 2019 Budget, the DMO offered two and three years' savings bonds for the month of August at 10.3% and 11.3% interest rates earlier.

The interest payment of the bond is quarterly, and the bond costs N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 subject to a maximum subscription of N50,000,000.

The office also announced that the auction for July was oversubscribed by 207.6 per cent. It said the total subscription received from bidders for the three bonds offered, including five, 10 and 30-year, was in excess of N156bn against N145bn offered in the month of July. The office also announced that it had raised an excess sum of N71 billion at the FGN bond auction in May 2019.

Recent trends show that investors have preference for long-term bonds as the total bids received from investors for the bonds was N271.11bn.

At the May 2019 FGN bond auction, DMO offered three instruments for five, 10 and 30 years to the investing public, with a total amount offered of N100bn.

Also in the April auction when the 30 year bond was first offered to the market, investors showed a stronger demand for the 30-year bond with subscription of over N100bn compared to the N30bn offered.

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