Connect with us

BUSINESS

Investors show keen interest in 30-year bond — DMO

Published

on

FG offers 2, 3-year savings bonds at 11.74%, 12.74% for May

The Debt Management Office (DMO), says investors keenly contested for the N20 billion first-of-its-kind 30-year bond offered by the Federal Government at the April Bond Auction on Wednesday.

In a statement it issued in Abuja, it said that a total subscription of N80.41 billion 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 said.

The statement said that the DMO offered a total of N100 billion in tenors of five, 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.

It added that the DMO allotted a total of N97.40 billion to successful bidders at 14.50 per cent for the five-year, 14.55 per cent for the 10-year and 14.80 per cent for the 30-year bond.

Meanwhile, the Federal Government made N754.1 million from sales of savings bond in April.

The result of the sales was also published on the DMO website.

It showed that N126.3 million was allotted to 197 subscribers for a two-year term at 11.27 per cent and N627.7 million to 365 subscribers for a three-year tenor at 12.27 per cent.

Our correspondent reports that savings bond issuance is expected to help finance the nation’s budget deficit.

Also, Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

Comments
NIGERIA DECIDES

NIGERIA DECIDES

Shell Digital Plan RESPONSIVE600x750
Shell Digital Plan RESPONSIVE600x750
GTB
JoinOurWhatsAppChannel