FG to auction N150bn bonds on October 23

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The Debt Management Office has said that the Federal Government will auction N150bn worth of bonds by subscription on October 23.

A circular by the DMO on Wednesday showed the breakdown of the figure to include a N50bn five-year reopening bond that would mature in April 2023 and be offered at 12.75 per cent; N50bn 10-year reopening bond that would mature in April 2029 and be auctioned at 14.55 per cent.

And the last one is the N50bn 30-year reopening bond expected to mature in April 2049 and be auctioned at 14.8 per cent.

According to the DMO, the auction date is October 23, while the settlement date is October 25.

It would be recalled that the Federal Government’s September bonds were oversubscribed by N10.9bn.

The results of the September bonds revealed that three instruments (five-year, 10-year and 30-year bonds) with a total face value of N150bn were offered to investors at the auction.

The total subscription received from competitive bids for the instruments was N160.9bn.

In addition, there were also non-competitive bids of N46.6bn, taking the total subscription received (competitive and non-competitive) to the tune of N207.5bn.

As in previous auctions, investors’ sentiments remained strong for the longer-dated bonds.

Subscriptions received from competitive bids for the 10-year and 30-year bonds were N82.91bn and N63.66bn, compared with the amount offered of N50bn and N55bn, for the two instruments, respectively.

Allotments were made to successful bidders at 14.3900 per cent for the five-year, 14.4300 per cent for the 10-year and 14.6400 per cent for the 30-year bonds.

The amount allotted to competitive bidders for the three instruments was N100bn, while the sum of N46bn was allotted to non-competitive bidders.

Overall, the total amount allotted at the auction was N146.6bn.


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