Despite Prevailing Market Conditions, Investors Bid N312.56bn for FGN Bonds

Ndubuisi Francis in Abuja

Despite the current market conditions, investors showed strong appetite for four FGN instruments which were put on offer Monday by the Debt Management Office (DMO).

The four instruments, which were offered to investors, received a total subscription of N312.56 billion.

The auction included 14.55 per cent FGN April 2029, 14.70 per cent FGN June 2033, 15.45 per cent FGN June 2038 and 15.70 per cent FGN June 2053, each for N90 billion.

The DMO revealed that amid monetary policy tightening and uncertainties, investors’ appetite for the 15.70 per cent FGN June 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 instruments was N227.76 billion, the DMO said in a statement issued Monday night.

Allotments were made at 13.85 per cent for the 14.55 per cent FGN April 2029, 15.00 per cent for the 14.70 per cent FGN June 2033, 15.20 per cent for the 15.45 per cent FGN June 2038 and 15.85 per cent for the 15.70 per cent FGN June 2053.