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FGNSB for February oversubscribed by ₦84 bln

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The Federal Government’s bond for the month of February worth ₦150 bln which was offered on Wednesday was oversubscribed by over ₦84 bln.

The Debt Management Office disclosed on Thursday that the trend of oversubscription at the FGN bond auctions for the year continued, after the three instruments for five, seven and 10-year tenors, with a total value of ₦150 billion were offered.

Total bids received from investors for the bonds exceeded ₦234 billion, with a total subscription level of 156 per cent.

The focus of investors was principally on the 10-year bond which had a subscription level of 392 per cent, it added.

Successful bids were allotted at rates notably lower than those at the January 2019 auction, with 14.52 per cent for the five-year, 14.799 per cent for the seven-year and 14.939 per cent for the 10-year bond.

The DMO allotted the full ₦150 billion offered to successful bidders across the three tenors.

Earlier, the DMO, had said the Federal Government would auction ₦150 billion bond on February 20.

A circular by the DMO had showed the breakdown of the figure to include a ₦50 billion five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent; another ₦50 billion seven-year reopening bond to mature in March 2025 and be auctioned at 13.53 per cent; while another ₦50 billion 10-year bond would mature in February 2028 and be auctioned at 13.98 per cent.

According to the DMO, the bonds to be auctioned had a settlement date of February 22.

The DMO had earlier auctioned a ₦150 billion bond on January 30 which was also over-subscribed.

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