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FGN Bond auction beats market expectations, attracts N312.6bn subscriptions

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DMO December Bond

The Federal Government Bond Auction this month attracted a total subscription of N312. 56 billion, according to the result released by the Debt Management Office (DMO).

“In spite of current market conditions, the Auction received a total subscription of N312.56 billion”, the Office said in its post-auction statement on Monday evening.

The DMO held the FGN Bond Auction for August amidst monetary policy tightening and uncertainties.

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Four (4) instruments were offered to investors at the Auction (14.55% FGN APR 2029, 14.70% FGN JUN 2033, 15.45% FGN JUN 2038 and 15.70% FGN JUN 2053) for N90 billion each.

The DMO revealed that investors’ appetite for the 15.70% FGN JUN 2053 (30-year Bond) remained strong, with a bid-to-cover ratio of 2.71 times.

The amount allotted to successful bidders for the four (4) instruments stood at N227.76 billion.

“Allotments were made at 13.85% for the 14.55% FGN APR 2029, 15.00% for the 14.70% FGN JUN 2033, 15.20% for the 15.45% FGN JUN 2038 and 15.85% for the 15.70% FGN JUN 2053”, the agency stated.

 

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