Investors crave long-term bonds as DMO’s auction turns ‘hot cake’
The Debt Management Office (DMO) says its N150 billion bond auction on Wednesday, November 20, was oversubscribed by 168.23%.
The bonds were offered N150 billion from three instruments; five-year, 10-year and 30-year bonds for N50 billion each.
A statement issued by DMO explained that the total subscriptions received through competitive bids for the instruments at the auction were N252.35 billion.
It said that the trend of investors’ appetite for the longer tenured instruments continued with a subscription of N115.09 billion for the 30-year bond.
According to the statement, the successful bids are allotted at the rate of 12% for the five-year, 12.93% for the 10-year and 13.39% for the 30-year bonds.
“The allotment rates indicated a significant decline from the rates at which the bonds were issued at the October 2019 FGN bond auction,” it said.
“The total amount allotted for competitive bids was N157.93 billion across the three tenors. In addition, the sum of N95.00 billion was allotted through non-competitive bids for all the tenors at the same rates as the competitive bids.
“Overall, the sum of N252.93 billion is allotted to investors at the auction through both competitive and non-competitive bids.”
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