Investors stake N312.56bn on FGN bonds
By Patience Ikpeme
The recent bond auction conducted by the federal government was met with strong investor demand, resulting in a total subscription of N312.56 billion in August.
Despite the current monetary policy tightening and uncertainties in the market, the auction attracted significant interest.
The Debt Management Office (DMO) offered four instruments at the auction, each valued at N90 billion.
These instruments included the 14.55% FGN APR 2029, 14.70% FGN JUN 2033, 15.45% FGN JUN 2038, and 15.70% FGN JUN 2053.
Surprisingly, the auction received a total subscription of N312.56 billion, demonstrating strong investor confidence. Notably, the 15.70% FGN JUN 2053 (30-year Bond) garnered the most interest, with a bid-to-cover ratio of 2.71 times.
Successful bidders were allotted a total of N227.76 billion across the four instruments, with interest rates ranging from 13.85% to 15.85%.
