DMO Allots Nigerian Bonds to Investors at 16.20% Marginal Rate
The Debt Management Office (DMO) allotted Federal Government of Nigeria (FGN) bonds worth N576.6 billion at the Sept primary market auction this week.
The authority floated N200 billion in reopened local bonds for its monthly auction across 5-year and 7-year tenors. The auction attracted fixed-interest securities investors, with total subscriptions reaching N1.3 trillion.
The 5-year reopened bonds with a total offer size of N100 billion recorded an aggregate subscription of N231.792 billion, according to the Debt Office auction result. With 22 bids reported as successful out of 66, the authority allotted N87.798 billion worth of reopened bonds at a marginal rate of 16%.
Reflecting appetite for long duration, investors staked more than N1.028 trillion on 7-year reopened FGN bonds with a N100 billion offer size. The DMO allotted N488.826 billion for 7-year FGN reopened bonds at a marginal rate of 16.20%. For the bond, 91 bids were reported as successful out of 271.
“Successful bids for the 17.945% FGN AUG 2030 (re-opening, 5-year bond) and 17.95% FGN JUN 2032 (re-opening, 7-year bond) were allotted at the marginal rates of 16.00% and 16.20%, respectively.
DMO said in its auction results that the original coupon rates of 17.945 for the 17.945% FGN AUG 2030 & 17.95% for the 17.95% FGN JUN 2032 will be maintained. #DMO Allots Nigerian Bonds to Investors at 16.20% Marginal Rate Nigeria Beats N20trn Non-Oil Revenue Target in August – Tinubu
