Monday, November 26, 2018
Advertisement

May auction results show short term bonds no longer attractive

May auction results show short term bonds no longer attractive
May 24
20:11 2018
Advertisement

Figures provided by the Debt Management Office (DMO) show that the five- year and seven-year tenor bonds offered by the federal government in May did not record up to 50 percent allotment.

According to the auction results released on Thursday, only the 10-year tenor bond was oversubscribed.

A total of N50.45 billion was realised from the auction, lower than the N70 billion target.

Of the N20 billion offered, N3.50 billion was allotted from the five-year bond at 12.75 percent.

The DMO also made N8.54 billion from the seven-year bond at 13.53 percent and N38.50 billion from its 10-year bond at 13.98 percent.

“In addition, N14.99 billion of the 13.53% FGN MAR 2025 and N14.99 billion of the 13.98% FGN FEB 2028 were allotted on a non-competitive basis,” the auction results read.

Of the total 101 bids, the debt agency said 62 were successful, adding that the auction drew subscriptions of N89.82 billion.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

It also uses a number of other debt instruments to fund capital projects.

In March, the DMO announced that it realised N64 billion from the bond auctions and that the proceeds will be used to fund the 2018 budget.

RECEIVE ALERTS FROM THECABLE

BBM CHANNEL C0038F78B
WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2018 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Tags
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement
Advertisement

Exchange Rates

November 16, 2018USDGBPEUR
INTERBANK306397354
LAGOS359475418
KANO359476420
PH360476420
ABUJA359478419
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement