Nigeria's Debt Office Raises N368bn from Bonds Sales
Patience Oniha, DG, DMO

Nigeria’s Debt Office Raises N368bn from Bonds Sales

Nigeria’s Debt Management Office has raised more than N368 billion from the Federal Government’s primary market bonds auction sales to investors in the local debt capital market.

Against an initial offer of N360 billion worth of instruments it opened the subscription; the agency pushed higher as investors development mix feeling ahead of May, 29 handover and rising inflation rate.

The subscription levels came in weak for Feb-2028, Apr-2032, and Jan-2042 maturities. Although, Mar-2050 bond papers saw massive oversubscription (3.8x).

TrustBanc Capital told investors that the stop yield was unmoved at 15.8% on the Mar-50 maturity, while Feb 2028 and Apr-32 maturities climbed by 10bps to 14.1% and 14.9%, respectively.

Meanwhile, Jan-2042 offer was allotted 29 basis points higher at 15.69%.

As expected, local traders at the secondary market switched their attention to the auction, thus, the FGN Bond market opened on a quiet note on Monday.

Market players, asset manager, and pension fund managers including other authorise dealers took their bids to the Primary Market Auction.

Consequently, traders told investors that the value of plain vanilla FGN bonds was largely flat for most maturities. The average yield on the secondary market remained unchanged at 14.00% while inflation raced ahead.

The 10-year, 15-year, 20-year, and 30-year FGN Bonds yields held steady at 12.72%, 14.96%, 15.23%, and 15.83%, respectively.

As the naira declined further, the Eurobond segment opened on a mixed note, with bids at the near end of the benchmark curve submerging offers at the mid and long ends. The average secondary market yield contracted to 13.15%. #Nigeria’s Debt Office Raises N368bn from Bonds Sales

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