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April Bond Auction Raises N176.06 bn for FG- DMO

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The Debt Management Office (DMO) says it raised N176.06 billion for the N60 billion offered for three instruments in the April bond auction.

In a statement the DMO issued in Abuja on Thursday,  it said the auction took place on Wednesday, adding that it received N275.67 billion in subscriptions for the three instruments of five, 10 and  30-year tenors that were offered.

This, it said, indicated an overall subscription level of 459 per cent, adding that demand was very strong for all the instruments offered at the auction.

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“A breakdown of the subscriptions shows that the sum of N49.70 billion was received for the five-year bond, N107.47 billion for the 15-year and N118.50 billion for the 30-year bond.

“Successful bids were allotted at the rate of nine per cent for the five-year, 12 per cent for the 15-year and 12.5 per cent for the 30-year bond, all of which are lower than the rates at the March 2020 bond auction.”

The DMO added that N20 billion was allotted through non-competitive bids for the five-year and 15-year tenors, which brought the total amount allotted from competitive and non-competitive bids to N176.06 billion.

The News Agency of Nigeria (NAN ) reports that Nigeria issued sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

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