DMO receives 300 bids for FGN bonds

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The Debt Management Office (DMO) says it received 300 successful bids in the recently released Federal Government of Nigeria (FGN) bonds offer.

The DMO, in a statement on Wednesday said the bonds offer were oversubscribed to the tune of N34.15 billion,  N12.3billion  and N143.08 billion respectively.

The News Agency of Nigeria (NAN) reports that the DMO recently released N225 billion FGN bonds offer.

According to DMO, the bonds are a N75 billion FGN bond at 13.5 per cent interest rate due in March 2025 and a N75 billion FGN bond at 12 per cent interest rate due in April 2032.

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It said that the third one was a N75 billion bond at 13 per cent interest rate due in January 2042.

The bonds were offered at N1, 000 per unit with a minimum subscription of N50 million, and in multiples of 1,000 units thereafter.

It stated that the first N75 billion bond offer received a total subscription of N108 billion, while the DMO allotted N75.28 billion.

It said that the second N75 billion bond offer received a total subscription of N78.22 billion and the DMO allotted N65.92 billion, while the third one received a total subscription of N222.76 billion with N79.68  billion allotted.

According to the agency, successful bids for the first, 13.53 per cent March 2025, FGN, re-opening 10-year bond was allotted at a marginal rate of 10 per cent.

It added that the 13 per cent FGN January 2042, re-opening 20-year bond was allotted at a marginal rate of 12.9 per cent.

“However, the original coupon rates of 13.53 per cent for the 13.53 per cent FGN March 2025 and 13 per cent for the 13  per cent FGN January 2042 bonds will be maintained.

“The coupon rate for the 12.50, FGN March 2042 (new issue) is set at 12. 50 per cent, ” the DMO said.  (NAN)

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