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HomeBanking & FinanceDMO: February 2020 FGN bond auction oversubscribed

DMO: February 2020 FGN bond auction oversubscribed

The February 2020 Federal Government of Nigeria (FGN) Bond Auction by Debt Management Office (DMO) which took place last Wednesday, was oversubscribed.

According to report from the agency, N140.00 Billion were offered across three Instruments to investors at the Auction (5-Year tenor: N45.00 billion 10-Year tenor: N45.00 and 30-Year tenor: N50.00 billion).

Subscriptions received through Competitive Bids for the three instruments was N398.20 billion, indicating a total subscription level of 284.43%.

Non-Competitive bid for the sum of N60 billion was also received, making the total subscriptions from Competitive and Non-competitive bid to the sum of N458.20 billion.

A breakdown of the Competitive subscriptions shows that the sum of N78.43 billion or 174.30per cent was received for the five-year Bond; the sum N95.70 billion or 212.67per cent for the 10-year Bond and the sum of N224.07 billion or 223.15per cent for the 30-year Bond.

Successful bids were allotted at the rate of 8.7500per cent for the five-Year, 10.7000per cent for the 10-Year and 12.15per cent for the 30-Year Bond, which indicate a decline from the allotment rates of 9.8500per cent, 11.1250per cent and 12.5600per cent for the five-Year, 10-Year and 30-Year Bonds, respectively, at the January 2020 FGN Bond Auction.

The total amount allotted for Competitive Bids was N100.00 billion across the three tenors, while a total sum of N60.00 Billion was allotted through Non-Competitive Bid for the five-year and 10-year tenors, at same rates with the Competitive Bids, which made the total allotment from Competitive and Non-Competitive bids to N160.00 billion.

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