The Debt Management Office (DMO), Nigeria has expressed delight over investors keen contest of the 20 billion naira maiden 30-year bond offered by the Federal Government at the April 24th Bond Auction in Abuja.
This was made known in a statement made available to media houses which explained that a total subscription of 80.41 billion naira was received from investors representing a 400 per cent subscription rate.
“The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities.
“With the success of the 30-year bond offering, the DMO has re-inforced its pioneering role in the Domestic Capital Market by introducing another longer-dated instrument.
“For the government, it represents appropriate funding for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates to access longer-term funding for their projects,”.
It further stated that “the DMO offered a total of N100 billion in tenors of 5, 10 and 30 years at the Auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150 per cent.”
The Statement added that “the DMO allotted a total of N97.40 billion to successful bidders at 14.50% for the 5-year, 14.55% for the 10-year and 14.80% for the 30-year FGN Bond”.
END
